Central Bank: Granting leave to foreign banks to those with capital of 50 million dollars
Bertha News Agency
The Central Bank of Iraq, on Monday, that the granting of leave to foreign banks to have a capital of $ 50 million, indicating that it is permissible to grant licenses only to foreign banks, which are subject to the control of the supervisory authority in the country where the headquarters is located.
The bank said in a statement that "foreign banks that seek leave to work for one of its branches in Iraq must have a capital equivalent to 50 million dollars, regardless of the number of branches, including the main branch."
The bank 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 balance with other banks of 20%, and if the increase of that percentage for more reasonable reasons It needs the approval of the Director General of the Banking Control Department."
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 the application for incorporation of the bank to meet the conditions are notified by the bank to approve the establishment or rejection of the bank and if approved is published in the Official Gazette."