Iraqi Banking Sector and Financial Infrastructure Overview
This report dives deep into the financial sector in Iraq, covering Iraqi banks, government structure and spending, electronic and cashless payments, and recent developments in the Iraqi financial scene, as well as the main issues noted.
In terms of banking services and technology, Iraq is getting close to keeping up with global trends. Nevertheless, some aspects must be addressed. Iraqis are still dependent on cash payments, and according to the World Bank, a mere 23% of them owned a bank account in 2017. Issues such as the lack of confidence in the banking sector and inadequate knowledge of cashless-payment methods have slowed down financial progress.
Despite having seven state-owned banks (SOB), fifty-three private sector-owned banks (PSOB), and fourteen international bank branches. This raises the overall number of financial organizations in the country to 74. However, the Iraqi banking industry contributed only 1.94% to the country's overall GDP in 2021.
While banks in Iraq have 904 branches across the country, the majority of these branches are located in the economic hubs of Baghdad and Basra, at 37.1% and 9.3%, respectively.
(Source: Kapita, in partnership with GIZ)