Page 27 - investment-map-En-2021

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Iraq Investment Map2020-2021

Banking Sector

Reinforcing and fostering the banking sector and the financial institutions
Developing regulation in the banking sector
Iraqi Central Bank has always been keen to have principles of corporate governance
established and applied in order to keep pace with the international developments and
apply the best practices in the banking sector through inserting structural, legislative and
monitoring developments that aim at minimizing possible risks since investors are
trending towards dealing with banks that use intact governance structures.
- Governance aims at defining the nature of relationship between the bank board of
directors and executive administration in a way that leads to protecting the depositors,
stock holders and benefits owners’ money in addition to focusing on disclosure and
transparency, and out of this principle a corporate governance guide has been published
by the CBI based on relevant Iraqi laws and international standards issued by
international establishments and institutions like (IFC, OECD, Basil committee for
banking monitory, AAOIFI, IFSB) to help banks reinforce the general frameworks for
governance and wise management.
The CBI, in its implementation for the strategic plan and through its keenness to continue
abiding by applying the best international practices in the field of banking industry and
international standards for financial reports (IFRS), applied the international standards for
financial reports in all licensed banks for the purpose of reinforcing the safety of their
financial ranking and deepening the concepts of transparency and disclosure in these
banks as this standard included abiding all banks to form a committee responsible of
applying it that contains a group of members to insure the success of the process of
converting from the international accounting standard.

Developing and Supporting Islamic Banking Industry
- Islamic banks had imposed a new reality on the international banking market
where terms like solidarity, checks and partnership had become common in
western banks and they could present a new concept in the banking transactions.
And for the purpose of developing and supporting the Islamic banks in Iraq CBI
issued the final edition of the executive regulations that regulate the work of the
Islamic banks and as follows:

* Issuing the regulations of the Islamic funding tools
* Issuing the regulations of risks management in Islamic banks
* Issuing the regulations of legislative monitory, internal checking and
compliance committee in Islamic banks according to Islamic Sharia
- CBI also drafted the regulations for solidarity insurance by a committee formed for
this purpose in cooperation with the insurance diwan; also, it developed the draft of
the Islamic Investment Checks Law and presented it to the State Council.

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