Baghdad: The Governor of the Central Bank of Iraq, Ali Al-Alaq, has announced a reform plan designed to stabilize the country’s banking sector and bolster both local and international confidence in its financial institutions. This initiative marks a significant step towards enhancing the reliability and efficiency of Iraq’s banking operations.

According to National Iraqi News Agency, a statement from the Central Bank’s media office highlighted a meeting held between Al-Alaq, the relevant team, and the consultancy firm Oliver Wyman. The discussion focused on the contents of a letter from the Iraqi Private Banks Association concerning the proposed banking reforms. The Central Bank has completed an extensive dialogue, during which attendees expressed a clear understanding of the letter’s topics and explored ways to adapt certain aspects of the plan for smoother implementation. Oliver Wyman has commenced an evaluation of available strategies to propose the most effective measures promptly.

Al-Alaq emphasized that the primary objective of the reform plan is to establish a robust and stable banking sector capable of operating safely and efficiently, adhering to both international standards and local regulations. This initiative aims to enhance governance, compliance, and risk management, enabling Iraqi banks to play a more prominent economic role, contribute to the development process, and deliver services with high efficiency using modern technologies and best practices.

Furthermore, Al-Alaq pointed out that the plan will significantly boost local and international confidence in the Iraqi banking sector. Successful implementation and adherence to its provisions are expected to restore relationships between compliant Iraqi banks and internationally accredited correspondent banks, particularly those that currently lack such international banking connections.