In response to evolving global standards and to enhance the corporate governance framework in Iraq’s banking sector, the Central Bank of Iraq “CBI” has introduced a comprehensive guide for Corporate Governance for Banks. This guide aligns with internationally recognized best practices, aiming to improve the banking sector’s transparency, accountability, and risk management practices.
CBI’s initiative is driven by the necessity to establish a robust governance system that mitigates risks and protects the interests of depositors, shareholders, and other stakeholders. Strong governance practices help banks foster trust and credibility, particularly with investors who seek institutions with sound governance structures. By emphasizing the relationship between a bank’s board of directors and its executive management, this guide ensures that banks operate with a clear, responsible management structure that safeguards the financial interests of all parties involved.
Adopting international standards of International Finance Corporation “IFC”, the Organization for Economic Co-operation and Development “OECD”, and the Basel Committee on Banking Supervision, the guide serves as a practical resource for banks in Iraq to strengthen their governance frameworks. By adopting these principles, Iraqi banks will be better equipped to navigate the complexities of modern financial markets, ensuring the protection of rights and promoting sustainable financial practices.