Parliamentary Finance Committee: Developing the Banking Sector is a Key Pillar for Achieving Comprehensive Economic Reform

Iraqi News

07-04-2025

Baghdad-INA
The Finance Committee of the House of Representatives confirmed, on Monday, the Central Bank's support for promoting sustainable financing, noting that developing the banking sector is a key pillar for achieving comprehensive economic reform.
Committee Chairman Atwan Al-Atwani said in a speech during the Iraqi Banking Sector Reform Conference, which was followed by the Iraqi News Agency (INA): "The banking sector reform project represents the starting point for developing the financial and monetary system based on solid scientific foundations, and the starting point for comprehensive economic reform and achieving sustainable development."
He added, "The Finance Committee of the Iraqi House of Representatives is keen to support the Central Bank of Iraq's management as part of its efforts to promote sustainable financing, encourage government and private banks to finance economic activities and development projects, and diversify revenue sources, thus contributing to covering the financial deficit in public budgets. This is especially true since the banking sector is not just a financial system, but rather the backbone for stimulating the economy and combating corruption."
He explained that "developing the banking sector is a fundamental pillar for achieving comprehensive economic reform and a major turning point toward a diversified economy, away from oil rents."
Al-Atwani continued, "In light of the trend toward maximizing non-oil revenues, introducing modern banking systems into tax and customs operations provides a clear path for tracking financial transactions and collecting revenue more efficiently. It also contributes to reducing tax evasion and closing informal outlets that drain the state's resources and weaken its ability to invest and provide services."
"Restoring confidence in our banking system and expanding digital financial transactions requires developing the infrastructure for this sector and providing cybersecurity for these transactions." Al-Atwani said.'
He emphasized, "The process of reforming and developing the banking sector must be accompanied by a movement to establish genuine partnerships with international transfers institutions and banks to regulate foreign remittances, ensuring compliance with international standards and the controls of relevant financial institutions. This must also include establishing a clear understanding with the World Bank and the US Treasury, emphasizing that the Central Bank of Iraq is responsible for evaluating the performance and compliance of private government banks and punishing violators. This will help avoid any improvised decisions or sudden external sanctions that would put our banks at risk and disrupt their operations."
Al-Atwani added, "We need a reform revolution in all sectors, especially the banking sector. This requires genuine will, collective action, and effective partnerships. Most importantly, we need a clear vision that goes beyond temporary solutions to create modern financial institutions capable of confronting economic challenges and crises, providing all necessary facilities to serve citizens and keep pace with modern requirements."
He pointed out that "reforming the banking sector is a shared responsibility and must be a priority for both the legislative and executive authorities, given its direct impact on driving all productive sectors, achieving national security and financial stability, and consequently improving people's livelihoods, promoting social justice, and to secure the future of coming generations."