CENTRAL BANK OF IRAQ GETS IFSB MEMBERSHIP

[Laid Back]

2 hours ago, Artitech said:

any ideal when this could take place?

Artitech,

I'm hoping to see the CBI International Bank Account number (IBAN) before the end of 2016 but it's more possible in 2017

This below is from the first review of the Stand By Arrengement (SBA)

BANKING SUPERVISION 

40. As of December 31, 2015, there were 56 banks operating in Iraq including 7 state-ownedbanks (SOB) of which one is an Islamic bank, 32 Iraqi private banks, of which 6 are Islamic banks, and 17 foreign branches, of which 5 are Islamic banks. The SOBs dominate the financial sector and account for the bulk of assets and credits. Three of the SOBs, Rafidain Bank, Rasheed Bank and Trade Bank of Iraq (TBI), account for around 90 percent of the banking system’s assets.

41. The financial positions of Rasheed Bank and Rafidain Bank are fragile following years of quasi-fiscal operations. As a first step to restructure these banks, the Ministry of Finance appointed international auditors to audit their latest financial statements according to international standards, in cooperation with the Executive Committee for the restructuring of these banks and the World Bank. The auditors will submit their audit reports to the Ministry of Finance by end-February 2017. As a second step, the Ministry of Finance will, by end-August 2017, elaborate a restructuring plan for these two banks, in cooperation with the Executive Committee for the restructuring of these banks and the World Bank, in light of the results of the aforementioned audits.

42. The CBI will continue to implement reform measures to enhance the stability of the banking sector in Iraq which include inter alia:

  - working on reviewing and assessing CBI prudential regulations with the assistance of the IMF Middle East Technical Assistance Center (METAC) and the World Bank;

 - strengthening banking supervision including for AML/CFT, with IMF and World Bank technical assistance;

 - compiling and publishing financial stability indicators, elaborated with IMF technical assistance (by end-December 2016);

 - enforcing the minimum capital requirement of banks of ID 250 billion ($214 million), a level to which all private banks except one have increased their capital;

 - contracting a consultant to assist the CBI in rating banks, whereby they have already rated 17 banks: three banks were rated “satisfactory”, eight banks rated “fair” and six banks “marginal”;

  - contracting a consultant to assist the CBI in upgrading the prudential regulations on “Liquidity” and “Capital Adequacy Ratio”;

-  preparing a Deposit Insurance Scheme which stipulates the establishment of a corporation to be licensed by the CBI, of which banks will have the opportunity to  take a share in the capital;

 - contracting a private firm to provide the CBI with a credit registry system for sharing information among banks on their common existing and potential borrowers;

-  issuing a banking law for financial institutions offering Islamic services;

 - penalizing, financially and administratively, banks and non-bank financial institutions for any non-compliance with laws and regulations in force;

  - introducing the international bank account number (IBAN) system in Iraq.

43. Building on the safeguards assessment conducted by the IMF in December 2015, the government will strengthen the legal framework of the CBI to provide for independent oversight of the CBI’s operations. The Governing Council of the CBI will, by end-December 2016, approve a new charter for the Audit Committee prohibiting Central Bank of Iraq executive representation on the committee (SB, Table 2). The Council of Ministers will, by end-March 2017, approve and introduce to parliament amendments to the Law on the Central bank of Iraq to strengthen CBI governance and the internal control framework, in line with the IMF safeguards assessment's recommendations (SB, Table 2). Specifically, the CBI Law should be amended to: (i) specify external auditor selection criteria and timely appointment (i.e., before the end of the fiscal year for which the financial statements need to be audited); (ii) shift the authority to appoint the external auditor from the Ministry of Finance to the CBI; (iii) provide for multi-year appointment terms for the external auditor; (iv) provide for timely publication of audited financial statements; (v) establish an audit committee, including its mandate and composition, and representation on the CBI Board; (vi) change the CBI Board’s composition to a non-executive majority; (vii) strengthen the autonomy of the chief internal auditor; and (viii) require market-based rates for lender of last resort operations. The proposed amendments should be developed in consultation with the IMF.

44. On November 25, 2015, the prime minister approved CBI credit lines to banks in an amount of ID 6 trillion, with a state guarantee, for on-lending to small and medium-sized enterprises (SME, ID 1 trillion) and agriculture or infrastructure projects (ID 5 trillion). So far the CBI has disbursed
ID 21.2 billion for the former and 0.5 trillion for the latter. Before proceeding any further with these initiatives, the Ministry of Finance and the CBI will analyze the potential fiscal risks posed by these credit lines. In light of this analysis, the government will discuss with IMF staff whether to continue executing these credit lines on the occasion of the second review (¶47). 

 

[md11fr8dawg]

These BOYZ can pull the trigger anytime. Now would be just fine with me!

[tigergorzow]

27 minutes ago, Laid Back said:

introducing the international bank account number (IBAN) system in Iraq.

LB Thanks, DV, I do believe some DV members confirmed that they have IBAN numbers on both of their IQD & Dollar Warka accounts.   I would assume that the CBI does as well since Warka is G2G. 

GO RV!!    

[tigergorzow]

Posted November 4 · Report post

On ‎11‎/‎4‎/‎2016 at 3:50 PM, DoD said:

It is true, when you log in on your home page both account numbers are there. The Warka number on top an then the IBEA number beneath it...

DV,   Found the confirmation above about DV member having Warka account with IBAN.             

 

 

[Synopsis]

Here is a link to a summary of responses to my inquiry about Warka accounts now having an IBAN associated with them:

 

[tigergorzow]

10 minutes ago, Synopsis said:

Here is a link to a summary of responses to my inquiry about Warka accounts now having an IBAN associated with them:

 

Synopsis, A Huge Thanks!!   It seems the "Stars" are lining up according to the plan of action IMHO.

[md11fr8dawg]

Guys, I have had the IBAN associated with both my IDQ & Dollar accounts at Warka for at least a month and is visible on  my accounts when I sign into my Warka account.

[Laid Back]

1 hour ago, Synopsis said:

Here is a link to a summary of responses to my inquiry about Warka accounts now having an IBAN associated with them:

 

BINGO.!!!

Thanks Synopsis for bringing that information to our attention.!

👍🏼

 

[new york kevin]

17 hours ago, jeepguy said:

it isss , demmm,  beeing,  neewd,  too de-neighbor bor, hood ....  {    man that is a hard language too print   }   but  if this is an initiation , too the world of big banking , then  the Iraq central bank will  take a few  months too get comfortable with the other folks , as what , and when too tell every one what the central bank has in store for the  Iraq currency  !     so if  a couple of the other big bank countries , says too Iraq " you need too put  a value too your dinar now  "  I think Iraq would pull back and take longer  too comply with any new ideas , as being new too the  convention of banking countries !  they will need a blend in time ....  but  if Iraq see , that every one in the I F S B  are a caring , sharing bunch , who actually takes interest in other countries , and not be a bully ,  then Iraq will , or , might get too a  value in the dinar  a lot faster !   { just me thinking  .. }

   

[Synopsis]

15 hours ago, md11fr8dawg said:

Guys, I have had the IBAN associated with both my IDQ & Dollar accounts at Warka for at least a month and is visible on  my accounts when I sign into my Warka account.

Thank You, md11fr8dawg, for the additional confirmation!

16 hours ago, tigergorzow said:

Synopsis, A Huge Thanks!!   It seems the "Stars" are lining up according to the plan of action IMHO.

You Are Welcome, TigerGorZow!  I, too, think everything is lining up on several fronts!

14 hours ago, Laid Back said:

BINGO.!!!

Thanks Synopsis for bringing that information to our attention.!

👍🏼

 

You Are Welcome, Laid Back!  Looks like our BINGO Prize may just be in the making and delivered soon!

[Wiljor]

Awesome Synopsis, I sure do like what's taking place as of late  

[ChuckFinley]

Same here Wiljor. To many people are concerned about what people are saying and not what physically has been accomplished. Officials talking about the dinar being worthless vs being accepted into international banking organizations and passing laws. We are getting there.  

[Synopsis]

2 hours ago, Wiljor said:

Awesome Synopsis, I sure do like what's taking place as of late  

I do, too, Wiljor!

2 hours ago, ChuckFinley said:

Same here Wiljor. To many people are concerned about what people are saying and not what physically has been accomplished. Officials talking about the dinar being worthless vs being accepted into international banking organizations and passing laws. We are getting there.  

I like what you said about "what physically has been accomplished".

To me, for real reconstruction to take place in a way to avert sectarian strife, Iraq will need to be a full WTO partner with an international currency so the investment can flow into Iraq once ISIS is announced as defeated in Iraq and the non coalition forces have gotten the boot from Iraq - which should be in the short to near term.  The other economic sectors can then be kick started as well with foreign investment.  Otherwise, I am afraid Iraq will languish in it's present condition for some time and be on the trajectory other published Iraqi articles suggest risking sectarian conflicts that will slow the mecessary economic reform implementation.