The Central Bank of Iraq has issued comprehensive regulatory guidelines for the classification of domestically systemically important banks (D-SIBs), aiming to strengthen the stability and resilience of Iraq’s financial sector. These regulations are designed to ensure that banks whose operations are crucial to the stability of the national economy maintain adequate resources to absorb losses and mitigate risks that could affect the broader financial system. This guide outlines the methodology for classifying D-SIBs, as well as the additional capital requirements and specific measures these institutions must adopt to enhance their governance and risk management frameworks.
The scope of these regulations, outlined in detail below, covers the classification process, quantitative indicators, additional capital requirements, and proactive measures to maintain systemic stability. The Central Bank of Iraq’s framework seeks to align with international standards while addressing the unique conditions and needs of the domestic banking sector. The regulatory measures also emphasize the importance of continuous oversight and adaptation to changing economic conditions to ensure the long-term stability of Iraq’s financial infrastructure.