The Central Bank requires a capital equivalent to 50 million dollars for the foreign bank's leave

The Central Bank requires a capital equivalent to 50 million dollars for the foreign bank's leave



Logo of the Central Bank of Iraq
 
26/06/2018

Economy News Baghdad

The Central Bank of Iraq, to ​​give leave to foreign banks to have a capital equivalent to 50 million dollars, indicating that it is permissible to give licenses only to foreign banks that are subject to the control of the supervisory authority in the country where the headquarters is located.

The Central Bank said in a statement, read by "Economy News", that "foreign banks that seek leave to work for one of its branches in Iraq must have a capital of 50 million dollars, regardless of the number of branches, including the main branch."

He added that "another condition for granting licenses is that the balance of any bank with another bank does not exceed 5% of its capital and in any case should not increase its assets with other banks of 20%, and if the increase of that percentage for more reasonable reasons, you need To the approval of the Director General of the Department of Banking Supervision. "

He explained that "to establish an entity belonging to a foreign bank or to open a branch of a foreign bank in Iraq must obtain a license from the Central Bank and may only grant licenses to foreign banks that are subject to unified and comprehensive control of the supervisory authority in the country where the headquarters of the foreign bank."

The central bank noted that "within six months of submitting an application for incorporation to the bank to meet the conditions, the bank is notified of the approval of the establishment or rejection of the bank and if approved, it is published in the official gazette."

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