Iraq raises foreign banks' capital to $ 50 million in two phases
Baghdad / long-Presse
the source said in an interview with (long - Presse), " the central bank has agreed to open a branch of Bank Audi in the capital , Baghdad, to be a branch president."
the source , who asked not to be named, said : " the central bank has also agreed initially the bank 's plan to open branches in Najaf, Erbil and Basra and Salahaddin. "
works Audi Bank to provide banking services for more than eight countries, particularly Lebanon, Egypt, Turkey, Switzerland, Saudi Arabia, France, Jordan, and Syria.
the increased the bank 's assets in the 7 years the last , according to his official from $ 20.39 billion at theend of 2008 to 42.27 billion at the end of last year.
the source added that " the Iraqi Central Bank decided to raise the foreign banks' capital to $ 50 million in two phases , " noting that " the first phase include a capital raising to 25 million dollars during the period lasts until 31 December 2016. "
The source continued," The second stage is to raise capital to $ 50 million during the year as well, that is,until 31 December 2017 , "noting that" the resolution submitted to the 50 million dollars instead of $ 70 million, came after meetings between the Iraqi Central Bank Governor Ali Mohsen Keywords and a delegation of Lebanese banks visited Iraq several times in the past three months. "
the source, that" the capital increase will allow the banks to open 15 branches in the Iraqi market , "explaining " the minimum capital exact money to open a foreign bank in Iraq was $ 7 million, but the central bank found that the advancement of the banking sector requires the lifting of foreign banks' capital, in a position to work in the Iraqi market."
the Lebanese banks objected to the central bank 's decision Iraqi raise their capital to $ 70 million, because ofthe Iraqi banking market is not conducive to profitability because of the security, political and economic conditions and have applied to the central bank reversed his decision , but he refused to categorically continued delegations to negotiate until reaching the agreement to $ 50 million in two phases .
CBI was announced on Sunday (June 12, 2016), to take a number of corrective decisions to eight community banks, while gave it three months to implement. it is
noteworthy that the banking system in Iraq consists of 54 banks as well as the Central Bank and distributed according to property among the seven state - owned and 23 private businesses , including Islamic nine inaddition to the 15 branches of foreign banks.