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The Central Bank of Iraq takes a decision to improve the performance of banks that are not committed to its reform plan
December 29, 2021
The Central Bank of Iraq takes a decision to improve the performance of banks that are not committed to its reform plan
The Board of Directors of the Central Bank of Iraq hosted, during its session on 12/29/2021, the President of the Association of Iraqi Private Banks and his two deputies.
His Excellency the Governor, Mr. Mustafa Ghaleb, presented the conditions of the banking sector in light of the reform plan adopted by the Central Bank in early 2021 to reform the sector and the directions of the Board of Directors to take corrective administrative measures for the purpose of compliance by some banks with the controls and instructions before proceeding with legal procedures against them.
The attendees supported this approach to ensure that the banks improve their financial conditions and avoid the effects resulting from their negative performance and its reflection on the reputation of the banking sector, despite granting them sufficient periods to improve their conditions and perform their obligations.
The Board decided to stop all banking operations and activities of these banks, while giving them a deadline of three months to improve their performance and secure the necessary liquidity to fulfill their obligations and increase their capital to the required limits.
It was stated in the Board of Directors’ decision that banks that are unable to secure what is required of them must merge with other banks, and in the event that the above is not met, the license will be withdrawn and legal measures will be taken against it.
The Central Bank of Iraq takes a decision to improve the performance of banks that are not committed to its reform plan
December 29, 2021
The Central Bank of Iraq takes a decision to improve the performance of banks that are not committed to its reform plan
The Board of Directors of the Central Bank of Iraq hosted, during its session on 12/29/2021, the President of the Association of Iraqi Private Banks and his two deputies.
His Excellency the Governor, Mr. Mustafa Ghaleb, presented the conditions of the banking sector in light of the reform plan adopted by the Central Bank in early 2021 to reform the sector and the directions of the Board of Directors to take corrective administrative measures for the purpose of compliance by some banks with the controls and instructions before proceeding with legal procedures against them.
The attendees supported this approach to ensure that the banks improve their financial conditions and avoid the effects resulting from their negative performance and its reflection on the reputation of the banking sector, despite granting them sufficient periods to improve their conditions and perform their obligations.
The Board decided to stop all banking operations and activities of these banks, while giving them a deadline of three months to improve their performance and secure the necessary liquidity to fulfill their obligations and increase their capital to the required limits.
It was stated in the Board of Directors’ decision that banks that are unable to secure what is required of them must merge with other banks, and in the event that the above is not met, the license will be withdrawn and legal measures will be taken against it.
