(Photo: Al-Sudani's media office)
Monitor
Al-Sudani urges banking reform, calls private banks key to economic growth
BAGHDAD — Prime Minister Mohammed Shia Al-Sudani on Monday chaired a meeting with the heads of Iraqi banks to discuss the government’s economic agenda, emphasizing the need for a modern, flexible banking sector to support national development.
“All state sectors depend on the presence of an effective and flexible banking system that embraces modern technologies,” Al-Sudani said, according to a statement from his office.
The meeting focused on implementing reforms aimed at revitalizing Iraq’s economic sector. Al-Sudani said the government has already made “significant progress” and called for a clear roadmap to strengthen the role of private banks, describing them as “a key partner in development.”
Statement from PM Al-Sudani’s media office:
Prime Minister Mohammed S. Al-Sudani chaired a meeting today, Monday, with the Chairpersons of the Boards of Directors of Iraqi banks, during which they discussed mechanisms for implementing the government’s banking reform plans, as part of a broader agenda to revitalize the economic sector.
The Prime Minister emphasized that all state sectors depend on the presence of an effective and flexible banking system that embraces modern technologies. He noted that the government has adopted comprehensive banking reform strategies and has contracted private auditing firms to assess all banks. He added that significant progress has already been made, highlighting that Rafidain Bank will soon relaunch with a new vision and in partnership with reputable and specialized banks.
He stressed the importance of establishing a clear roadmap to address the status of the private banking sector, recognizing it as a key partner in development. The Prime Minister called for enhanced cooperation to advance meaningful steps in economic reform, clarifying that the state is moving away from detailed sectoral intervention and will instead act as a regulator. He reaffirmed the government’s efforts to integrate the private sector and foreign companies into major projects, support domestic production, and redirect import-related cash flows toward providing local goods and services to strengthen internal investment.
Prime Minister Al-Sudani directed banks to simplify procedures, play an active role in development, invest in available opportunities, pursue partnerships with international firms, and rebuild public trust to encourage citizens to deposit their money in banks.
The bank chairpersons expressed their gratitude for the government’s support in overcoming challenges. They reported marked improvements in credit and financial reliability indicators and highlighted the increase in electronic payment transactions from 1.7 trillion dinars in 2020 to 21 trillion dinars in 2024. They also confirmed their readiness to domicile salaries in the private sector and their commitment to the restructuring of Iraqi banks under the Oliver Wyman plan, which they view as a comprehensive solution to most of the sector’s challenges.
