Baghdad: Prime Minister Mohammed Shia al Sudani has reiterated the government’s commitment to continue the banking reform process, directing bank administrations to simplify procedures and encourage citizens to deposit.

According to National Iraqi News Agency, a statement from the Prime Minister’s Media Office indicated that Al Sudani chaired a meeting with the heads of the boards of directors of Iraqi banks. During the meeting, the mechanisms for implementing the government’s banking reform plans, part of broader economic sector reforms, were discussed. Al Sudani emphasized that an effective and flexible banking system, utilizing modern technologies, is crucial for the linkage of all state sectors.

The Prime Minister highlighted the government’s progress in banking reform, which includes contracting with private financial auditing companies covering all banks. He announced the launch of the First Rafidain Bank with a new vision, in partnership with well-known specialized banks, and outlined a roadmap for addressing the private banking sector’s situation as a development partner.

Al Sudani underscored the state’s commitment to a regulatory role, avoiding detailed interventions, and promoting private sector and foreign company integration in major projects. He also emphasized the importance of supporting local production and absorbing imported cash flow to boost domestic goods and services.

The Prime Minister instructed banks to simplify their procedures and actively participate in development opportunities as investors, partnering with foreign companies and building trust with citizens. This alignment aims to provide reassurance and encourage investment.

The chairmen of the boards of directors of Iraqi banks expressed gratitude for the government’s support in resolving banking issues. They noted improvements in credit and financial reliability indicators, with electronic payment trading rising from 1.7 trillion dinars in 2020 to 21 trillion dinars in 2024. They affirmed their readiness to localize private sector workers’ salaries and committed to restructuring Iraqi banks in line with the Oliver Wyman plan, which is expected to address many challenges faced by the banking sector.