Reform plan to align banking services for Iraq’s private and public sector workers

BAGHDAD — Iraq’s Private Banks League has announced a plan to integrate private sector employees into the national banking system, granting them access to loans and financial services under terms similar to those offered to public sector workers.

The move is part of a broader banking sector reform effort guided by international consulting firms Ernst & Young and Oliver Wyman. Ernst & Young is focused on restructuring Iraq’s public banks, while Oliver Wyman is leading reforms in the private sector.

“Our priorities for revitalizing the banking sector focus on building trust between citizens and banks, which means increased banking activity in the future,” said Ali Tariq, CEO of the Iraqi Private Banks League, in an interview with state-run Al-Iraqiya TV. “The broader goal is to reform the banking sector—both public and private.”

Tariq said the reform plan targets ownership structures, governance, anti-money laundering efforts, risk management, and improvements to business planning and customer services. He also pointed to ongoing developments in digital payments and housing finance, noting that a modern economy requires banks capable of functioning within the global financial system.

“We are seeing major progress in many sectors, and they need a solid banking system to sustain development,” he said. “This requires more flexible services, one of which is integrating private sector employees into the banking system.”

Under the plan, private sector workers will be able to open salary accounts and receive banking benefits with fewer collateral requirements. “They will be treated like public employees in terms of access to services,” Tariq said.

In Iraq, the Tawtin (localization) program currently enables public sector salaries to be paid directly into personal bank accounts, replacing traditional cash disbursements. The initiative aims to modernize financial services, reduce corruption, and promote financial inclusion. Enrolled employees gain access to benefits such as loans, debit cards, online banking, and streamlined services—all of which will now be extended to the private sector under the proposed reforms.