The Iraqi Central Bank (ICB) has set a time limit for all banks in Iraq to increase their capital and reach a minimum requirement of 250bn IQD ($215m), hoping this will improve banking.
ICB deputy governor Muzher Mohammed Saleh said: "We asked all banks in Iraq to increase their capital this month to strengthen their dealings and give more loans."
The number of banks in Iraq exceeds 50 with more than 800 branches spread across the provinces. This number is still low if compared to the number of the population.
Iraq is suffering from a decline in the citizens' share of banking services of up to one bank for 40,000 people. This is a big difference compared to what exists in neighboring countries.