Central calls on companies to mediate integration
Tuesday, October 16,
Alsumaria News / Baghdad
The Central Bank of Iraq, on Tuesday, called on companies to broker the sale and purchase of foreign currencies to merge to form a single banking institution.
"It calls on companies wishing to merge to form a single banking institution based on the amended Companies Law No. 21 of 1997," the bank said in a statement. "The objective is to achieve financial and banking stability and create a competitive work environment."
"The formation of a larger entity covers wider services commensurate with the large size of the merged institution and thus obtaining greater financial services by the Central Bank commensurate with its size," the bank said.
"This process will create strength for the merged institution,.
The bank said that "the merger will be in accordance with two categories, including A, which requires that the merger is not less than 10 companies, which will form a capital of not less than 5 billion dinars," pointing out that
"this category will receive a label exchange company instead of mediating and will enter the activity of mediating the sale and purchase of foreign currencies As part of its activity as one of the privileges that will enjoy, in addition to allowing them to carry out foreign remittances, as well as the opening of branches do not exceed 3 branches.
The bank said that "the second category, which is called B, where the integration of a number of not less than 5 companies, which will form a capital of not less than 2 billion and 500 million dinars and the amount of 500 million dinars per company," pointing out that
"these companies will be granted privileges include the designation of the institution Which will result in a merger (exchange company) and not mediating where the intervention will enter the mediation of the sale and purchase of foreign currencies within the activity as one of the privileges that will enjoy.
The third category includes category C, where the category will be granted to companies that do not wish to merge, which have not been granted any privileges as granted to the above two categories." He said.
The Central Bank of Iraq was established as an independent bank under its law of 6 March 2004 as an independent body responsible for maintaining price stability and implementing monetary policy.
It supervises 10 commercial banks, 26 private banks and 16 Islamic banks, as well as 19 foreign banks. 6 financial institutions and 31 financial transfer companies.