The Governor of the Central Bank, Ali Al-Alaq, announced today, Monday, a roadmap for the financial sustainability of the Iraqi banking sector, while indicating that this map is part of the efforts to upgrade the banking sector.
Al-Alaq said in a speech during the launch ceremony of the Financial Sustainability Map Project and the Environmental, Social and Corporate Governance Standards Guide for Banks, that “the term environmental, social and governance standards has witnessed turbulent growth since its first launch in 2005,” indicating that “the environmental aspects and the response related to climate change are major factors driving the development of environmental, social and governance standards, in addition to the growing importance of other basic elements, especially social ones.”
He added, “If these standards are important for any economic entity or company, regardless of its activity, mission and products, then their importance to the financial sector is a matter of utmost importance, given the significant impact that social and environmental changes have on the reality of this sector and the need to manage it according to regulatory, supervisory and technical rules that avert risks to ensure the rights of shareholders and stakeholders within a framework of transparency and disclosure, and above all, contribute to achieving financial stability, as the repercussions of crises are reflected in the economic and social environment and general stability, just as the environmental and social repercussions are reflected in stability.”
He added, “We are pleased to announce a roadmap for financial sustainability for the banking sector in Iraq for the years 2023 to 2029 and social and institutional standards,” noting that “this project is part of the ongoing efforts made by the Central Bank of Iraq to advance the banking sector based on international best practices, as well as keeping pace with developments in the banking industry.”
He pointed out that “with this announcement, the Central Bank of Iraq is the first in the region to implement this guide.”
Al-Alaq praised the role played by international experts at the International Finance Corporation, affiliated with the World Bank Group, and their effective contribution to preparing the roadmap for financial sustainability for the banking sector in Iraq, appreciating the effective and ongoing partnership and fruitful cooperation with the institution.
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