Strengthening financial system<\/p>\n
Compliance with international standards<\/p>\n
Mistrust of banks high among Iraqis<\/p>\n
Iraq intends to appoint an independent foreign auditor to oversee compliance by local banks with new capital requirements and the ongoing restructuring of the country\u2019s ailing banking sector.<\/p>\n
The Central Bank of Iraq (CBI) said it is pushing ahead with reforms as part of a \u201cstrategic vision\u201d to strengthen the financial system and enhance the efficiency of banking institutions in accordance with best practice and international standards.<\/p>\n
The CBI said\u00a0in a statement<\/a>\u00a0that all banks operating in its jurisdiction must work towards fulfilling the requirements of the second phase of a reform programme launched in 2025.<\/p>\n This phase focuses on \u201cstrengthening compliance and governance levels, enhancing transparency, and improving institutional performance, thereby contributing to financial stability and strengthening confidence in the banking sector,\u201d the CBI said.<\/p>\n \u201cCBI is in the process of contracting with an independent and specialised auditing firm to conduct the final evaluation of banks that have met the criteria of the first phase of the reform programme. This evaluation will ensure their compliance with external transfer requirements and relevant international standards,\u201d it said.<\/p>\n