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FINANCIAL NEWS
Iraq to slash number of local banks: CB
31 Aug 2011
(MENAFN) Iraq’s central bank’s deputy governor, Mudher Kasim, said that in order for international banks to invest in the country, the central bank would slash the number of Iraq’s local banks by more than a third to 22 banks, reported The National.
Kasim added that the central bank asked local banks to increase their capital to USD85 million in 2011, and to USD127 million by the end of June 2012, to USD212 million in 2013.
He also said that the number of banks’ branches in Iraq was 800 branches contributing to a huge and constant reliance on cash, moreover due to security and logistics issues, around 67 percent of money supply circulation in the country occurred outside banks.
It is worth noting that through reducing the number of local banks in Iraq; around 15 takeovers would be created for global lenders that seek to expand their footprint in the country.
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