Central Bank of Iraq revokes license of 5 commercial banks The Central Bank of Iraq stated on Monday, January 27th, that licenses of 5 commercial banks might be revoked if these banks cannot or will not increase their capital. “The Central Bank is expected to revoke the permits of 5 commercial banks who are unable or unwilling to increase their capital before the grace period by end of January 2014”, stated Reuters quoting Governor of Iraq’s Central Bank, Abdul Basset Al Turky’s speech on the margin of a financial conference held in Dubai. “Other banks have abided by the decision and taken the required procedures; nevertheless the aforementioned banks did not”, added Al Turky; pointing out that “the Central Bank will proceed to revoke the permits of those who did not raise their capital by the end of the grace period”. The Iraqi Central Bank is pressuring the private bank sector to increase capitals to 250 billion Dinars (215 million Dollars) in an attempt to strengthen the banking system and promote its efficiency. The first deadline for this procedure to be completed was June 2013 however it was extended until the 31st of January 2014. According to the Central Bank’s website, 23 traditional commercial banks operate in Iraq in addition to 9 private Islamic banks, 7 governmental banks and 16 foreign banks.
Posted on: Fri, 31 Jan 2014 08:06:32 +0000