BAGHDAD, June 11 (AKnews) - The Iraqi Central Bank (ICB) stated today that the country is suffering from a low share per capita of banking services at an average of one bank per 40,000 people.
The ICB added that this is a big difference from what is found in neighboring countries, where every 10,000 people have a branch.
The deputy governor of the bank Muzher Mohammed Saleh said: "Increasing the number of bank branches in Iraq is a double-edged sword. The opening of any bank should be coupled with an increase of capital, because no increase in capital may lead to dependence on the deposits of citizens and this is risky.
"The owners of banks welcome the idea of increasing capital considering that this will lead to the introduction of additional shares in the market and their prices will decrease."
According to statistics published recently by the Iraqi Finance Ministry, there are 25 private Ahli banks and five state banks in Iraq.
The most prominent of these five banks are: Rafidain Bank which has 190 branches in all provinces and abroad except the Kurdistan Region, Rasheed Bank which has 150 branches inside and outside Iraq, except Kurdistan, along with the Land, Agricultural and Industrial bank.
[You must be registered and logged in to see this link.]