An economic expert proposes amending the criteria for Iraqi banking reform.

On Thursday, economic expert Ahmed Abd Rabbuh called for amending the banking reform standards announced by the Central Bank of Iraq. The amendments include adding a clause allowing some banks to operate domestically under the central bank’s supervision, while other banks would apply international standards if they wish to operate internationally.

Abdul Rabbo told Shafaq News Agency, “Central Bank Governor Ali Al-Alaq revealed a comprehensive plan for banking reform, and he is counting on the media’s important role in clarifying this issue in a transparent and accurate manner.”

He explained that “among the proposals submitted by specialists to the Central Bank Governor is to allow some banks to operate internally under the direct supervision of the bank, while the remaining banks apply international standards with partners such as Oliver Wyman.”

He pointed out that “it is important to open an expanded dialogue between the Central Bank and Iraqi banks to clarify the technical aspects of the document and discuss mechanisms for implementing reform gradually, taking into account the specificities of Iraq’s economic reality. There is also a need to commit to reform in principle, while formulating standards and procedures in a manner that enhances confidence in the banking sector and contributes to its development.”

Abdul Rabbo pointed out the importance of adopting a participatory and consultative approach between the Central Bank and banks, through the formation of joint technical committees to review reform requirements and ensure their compatibility with the national financial and economic reality. This will maintain a balance between reform requirements and the capabilities of Iraqi banks, and ensure the protection of the interests of local and international investors and those working in the sector.

It’s worth noting that the Governor of the Central Bank of Iraq, Ali Al-Alaq, held a meeting on Tuesday with the international company Oliver Wyman to discuss the details of the banking reform plan submitted by the Iraqi Private Banks Association. This meeting is part of efforts to develop the banking sector and align it with international standards.

Shafaq.com