Lebanese banks in Iraq is committed to the fight against money laundering and terrorist financing la

Iraq Central Bank. (archives)

Matthew Morris Matthew Morris

June 18, 2016

Dissipated the Lebanese banking sector concerns about the possibility of decline in Iraqi monetary authorities about the content of the agreement which has been reached in the past few days with the Lebanese side about requiring foreign banks operating in Iraq to increase its capital crisis, through the CBI issued a formal letter the content of the agreement that was reached, what ends a series of problems experienced by the Lebanese and foreign banks in Iraq.

Revealed a "day" in the June 16 this about details of the agreement that was reached between the Governor of the Central Bank of Iraq by proxy Ali Mohsen Ismail Lebanese delegation banker , who assigned by the Association of Banks to Iraq in an effort to ease the obligation of foreign banks operating in Iraq to increase its capital by about 50 million crisis dollars at the end of June , and solutions.

in the past few hours, I sent the Directorate General of banking and credit control, studies and research banking Department at the Central Bank of Iraq, signed by the governor acting Ali Mohsen Ismail book, I got "daylight" a copy of it, and directed to branches of foreign banks operating Iraq knows where the central decision modifying the date of branches of foreign banks to increase capital by $ 25 million up to 12/31/2016 and $ 50 million up to 12/31/2017. Remarkably , in this book he addressed to the foreign banks operating in Iraq and not to the Lebanese only, which means that the Lebanese delegation who negotiated the Iraqi side was able to extract a solution to this crisis extends to all foreign banks in Iraq and not the Lebanese only, note that most of the other foreign banks operating in Iraq did nothing in the past months to seek to find a solution to this crisis , according to banking sources involved in the negotiations sponsored by the Association of banks of Beirut directly. The meetings , which for months has continued between the Lebanese and Iraqi sides have yielded a solution eliminates installments capital Lebanese banks operating in Iraq to increase along with all the other foreign banks in two stages, that this increase lead with a Lebanese banks money in Iraq to allow them to open 15 branches in Iraqi market.

on the future of Lebanese banks in Iraq began to talk about the intention of some of them to leave the market after it became the risks and complications is higher than the level of profitability and investment worthwhile ratio, banking sources show that all Lebanese banks operating concept strategically away from any decision to expand or enter the markets new exterior. Note that when you enter into Iraq was much better than the current situation is the situation on the security and economic levels, though banks have continued to exercise their activities in this market because it has sufficient flexibility gained through decades of working in the most difficult of the current environment in Iraq, and adapt to the conditions environment unfavorable.

As some banks , which began looking at the possibility to get out of this market , they prefer not to drain their own funds to increase the capital in one branch in Iraq is no longer a big profit.