Iraq to review performance of state-run banks, consider management changes

BAGHDAD, Iraq — The Iraqi government has launched a comprehensive review of the performance of state-owned banks, with management changes among the options under consideration, a source familiar with the matter said on Saturday, April 19. According to the source, the review was prompted by criticism that public banks have not provided adequate support to the government and citizens during periods of financial strain. Officials cited shortcomings in credit and advance services, limited backing for economic activity, and slow progress in adopting electronic banking systems. Some state banks remain heavily dependent on paper-based processes and have underdeveloped digital infrastructure, the source said. The government is evaluating appropriate administrative measures, including potential reassignments, for managers whose performance has not translated into concrete improvements in services. The source added that bank leadership will be expected to support the economy more effectively, accelerate digital transformation and expand credit and advance facilities in the coming period. The broader aim, officials said, is to raise the efficiency of public financial institutions and strengthen services for citizens. No further details on the timeline or specific banks under review were immediately available.