By John Lee.
The Iraqi Cabinet has approved significant banking reforms, including the establishment of a new, innovative financial institution named Rafidain First Bank [Rafidain Al-Awal Bank].
The new bank aims to lead regional financial markets and provide advanced digital banking services.
Key Details:
- New Bank Creation: Rafidain First Bank will operate as a joint-stock company leveraging the latest technologies to serve businesses and individuals domestically and internationally.
- Capital Structure:
- Initial authorised capital: 1 trillion IQD.
- Government and public stake: 24%.
- Initial paid-in capital: No less than 500 billion IQD.
- Existing Structure: Rafidain Bank will remain central for governmental financial transactions while undergoing restructuring with Rasheed Bank under a roadmap developed with Ernst & Young (EY).
- Operational Support:
- The Central Bank is authorised to contract a consulting firm to oversee the new bank's establishment.
- A dedicated committee, including representatives from the Central Bank of Iraq (CBI), Rafidain Bank, and the Ministry of Finance, will coordinate efforts.
- Industrial Bank Transformation: The Industrial Bank will be converted into a private joint-stock company with a strategic partner.
- Other Institutions: The Agricultural Bank and Real Estate Bank, along with the Housing Fund, will maintain their current structures.
This initiative underscores Iraq's commitment to modernising its banking sector and fostering regional competitiveness.
(Source: PMO)
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