The Central Bank of Iraq announced, on Wednesday, the suspension of all operations and activities of non-compliant banks.
A statement by the bank, which NRT Arabic received today (December 29, 2021), stated that “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.”
The statement added, “The Governor of the Central Bank, 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 controls and instructions before proceeding with legal procedures against them.”
He explained, “The meeting supported this approach to ensure that 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.”
He pointed out that “the Council 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.”
He pointed out that “the board of directors’ decision stated that banks that are not able 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what is required of them must merge with other banks, and in the event that the above is not met, the license will be withdrawn and legal measures will be taken against it.”