Updated Regulations on Bank Mergers and Consolidation

Central Bank of Iraq Issues Updated Regulations on Bank Mergers and Consolidation The Central Bank of Iraq (CBI) has issued an official circular addressed to all licensed banks, announcing amendments to the regulations governing bank mergers and consolidation within the Iraqi banking sector. The circular is issued pursuant to a decision of the CBI Board of Directors for the year 2024, and refers to updated Merger and Consolidation regulations  attached to the circular, which are to be applied in accordance with the approved regulatory framework. These regulations form part of the CBI’s supervisory mandate to: Ensure the soundness and stability of the banking sector Regulate structural changes such as bank mergers and unions Maintain effective prudential oversight Align banking practices with applicable regulatory and governance standards All licensed banks are required to take note of the updated regulations and ensure compliance with the procedural and regulatory requirements set out therein. Bank mergers and consolidation transactions have a direct impact on: Financial stability Capital adequacy and governance structures Shareholder and depositor protection Regulatory supervision and approval processes How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.