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Iraq Aims to Boost Financial Inclusion, Sustainability with New Roadmap

The Central Bank of Iraq has launched a comprehensive roadmap aimed at promoting financial inclusion, sustainability, and transparency in the country’s banking sector. The Sustainable Finance Roadmap, unveiled on December 14, 2023, outlines key initiatives to enhance the sector’s green, social, and sustainable lending practices.

Key Initiatives

  • Develop enabling regulations to promote green, social, and sustainable lending and financing
    • Guidelines for banks to disclose their environmental, social, and governance (ESG) performance
    • Targets for digital financial inclusion
  • Improve access to finance through technology
    • Increase the number of online or mobile bank accounts
    • Develop a national strategy for financial inclusion
  • Enhance transparency and market discipline in the banking sector
    • Mandatory ESG disclosure requirements
    • Guidance on sustainability reporting and disclosure
    • Mandate for banks to publish specific reports on their sustainability policies and practices

Roadmap Priorities

  • Promote digital financial inclusion through technology
  • Develop a national strategy for financial inclusion
  • Enhance transparency and market discipline in the banking sector

Capacity Building and Progress Measurement

  • Create a dedicated website with sustainable finance information and capacity-building materials for banks and other regulated entities
  • Develop progress measurement tools to assess the sustainable performance of banks and related institutions

Industry Expert Reaction

“The Sustainable Finance Roadmap is a critical initiative that will help promote transparency, accountability, and sustainability in Iraq’s banking sector,” said a senior economist at the International Monetary Fund (IMF). “We look forward to working with the Central Bank of Iraq to implement this roadmap and support the country’s economic development.”

Central Bank Governor’s Statement

“Iraq is committed to promoting sustainable finance practices and ensuring that our banking sector plays a key role in supporting the country’s economic growth and development,” said the Central Bank Governor. “This roadmap outlines our vision for a more sustainable and inclusive financial system, and we are committed to working with all stakeholders to achieve this goal.”

Background

Iraq has made significant progress in recent years, including the enactment of corporate governance guidelines for banks, the issuance of the Iraqi Sustainability Principles, and the formation of a national committee for sustainable development.

The launch of the Sustainable Finance Roadmap marks a significant step forward in Iraq’s efforts to promote financial inclusion, sustainability, and transparency. The roadmap has been welcomed by industry experts and policymakers alike, who see it as a crucial step forward in promoting Iraq’s economic development and attracting foreign investment.