CBI: Over 30 Islamic banks grow quickly in Iraq's banking sector

Shafaq News/ The Central Bank of Iraq (CBI) announced on Tuesday, that the country's economic sector benefited from the operation of over 30 Islamic banks under the Central Bank of Iraq (CBI) guidance.

Speaking at the technical workshop on Governance and Compliance for Islamic Financial Institutions organized by the Council for Islamic Banks and Financial Institutions (CIBAFI) in Baghdad, Ammar Hamad, the deputy governor of CBI, stated, "Islamic banks are experiencing fast growth in Iraq and worldwide, and they could take advantage of an increasing market opportunity."

Furthermore, Hamad added, "Banks need good governance to operate as financial institutions. Iraq has followed the international standards and laws the Central Bank of Iraq set since last year. This has helped the banks to avoid sanctions from the Central Bank or other countries."

In turn, the CIBAFI's Secretary General, Abdelilah Belatik, stated, "The Council plays a crucial role in promoting Islamic financial banking globally and tracking the changes in the world financial sector."

He also said, "One of the Council's main objectives is to enhance the role of Islamic banks and adapt to the latest developments and digital transformations."

In turn, Samir Al-Nusairi, the deputy head of the Iraqi Private Banks League, stated, "The Iraqi banks showed their ability and patriotism by overcoming the economic challenges and following the CBI's instructions, which focused on economic initiatives, trade regulation and the shift from cash to digital economy based on international and banking standards."

Moreover, he assured, "the Iraqi Private Banks League works under the guidance and supervision of the CBI to enhance and develop the banking sector and finance projects and create a favorable environment despite the economic difficulties that Iraq faces."

Notably, the Council is a global organization with 140 Islamic financial institutions from 37 countries as its members.

The workshop will last for two days, in Baghdad, and aims to understand the different governance criteria and their importance in Islamic banks, as well as the governance within the framework of Islamic Sharia.

The workshop also shed light on the relationship between governance and risk management and understanding the foundations of compliance monitoring in Islamic banks.