Report: The Central Bank is in the process of implementing the loan-to-guarantee ratio
Economie Today, 09:45
Follow-up - informed
A report issued by the Arab Monetary Fund dealt with the initiatives in support of financial stability undertaken by the Central Bank of Iraq, through the Monetary and Financial Stability Department, which contributed to the preparation of three initiatives within the strategic plan 2021-2023.
The report indicated that the initiatives represented the development of financial safety indicators, Enhancing cross-border risk control, and monitoring the indebtedness of individuals with the banking system.
The report added that the Central Bank of Iraq applies Basel liquidity standards (liquidity coverage ratio and net stable financing ratio),
as for the financial leverage ratio, and the loan-to-value ratio, it is planned to apply them during the year 2022.
Among the requirements of (Basel III), it is The minimum capital adequacy ratio according to the requirements of (Basel III) 5.12 percent, and this procedure is applied to commercial banks, as for Islamic banks, the project is still in progress.
A comprehensive legal framework is also available that includes the control and supervision of payment systems and electronic transfers, the mobile payment service, and the unified account number.
There is also a published guide to binding governance for banks and other financial institutions, and a general credit inquiry system, in accordance with the principles of capital market infrastructure.
With regard to the infrastructure of the financial system, the total settlement system was evaluated and the twenty-four principles applied to the system to reduce risks, in accordance with international best practices.