The Iraqi Private Banks League organized a dialogue session to discuss the latest developments in Iraq’s banking sector, including issues facing restricted banks and fines imposed by the Central Bank of Iraq. Ali Al-Alaq, the Governor of the Central Bank, attended the session, along with representatives from banks and electronic payment companies.

At the outset, Wadee Al-Handel, Chairman of the Iraqi Private Banks League, welcomed the governor and participants, emphasizing the importance of collaboration between the Central Bank, banks, and electronic payment companies to enhance financial stability and develop the banking system in line with international standards.

Al-Handel noted that the special committee for assisting restricted banks, formed within the Economic Ministerial Council, had urged support for restricted banks and called for suspending fines against them due to their challenging circumstances that everyone knows. He explained that these banks comply daily with global financial requirements but continue to face daily fines, urging the Central Bank to review and halt these penalties.

For his part, Governor Ali Al-Alaq addressed the Central Bank's measures concerning banks restricted from using the U.S. dollar, expressing optimism regarding discussions with U.S. counterparts on this issue.

He also confirmed that the Central Bank supports the establishment of digital banks, revealing that 75 applications have been submitted, contributing to accelerating the digital transformation of the banking sector in Iraq. However, in the initial phase, only one or two licenses will be granted as a pilot program to assess potential challenges and problems facing these digital banks.

Al-Alaq stressed the need for banks to increase financial inclusion by offering modern banking services to a wider segment of society. He underscored that transitioning to a digital economy is a key step in strengthening financial stability and economic development.