Fiscal Year 2027
Capacity Development Activities
Financial Supervision and Regulation
Working on Licensing and Digital Banking (June 14-25)
The Central Bank of Iraq (CBI) strengthened its ability to apply risk-based licensing and supervise digital banks more effectively, supported by prioritized recommendations and an implementation roadmap aimed at promoting a more consistent, forward-looking, and robust regulatory framework in line with Iraq’s broader banking sector reform agenda. METAC mission helped strengthen the CBI’s regulatory and supervisory framework for both banking licensing and digital banks. Through a review of the Banking Licensing Guide, related regulations, and the regulatory treatment of digital banks, the mission identified key gaps, inconsistencies, and areas requiring clarification. A workshop enhanced the capacity of CBI supervisors by deepening their understanding of risk-based licensing principles, digital banking models, and the supervision of operational, ICT, cyber, outsourcing, and other emerging risks. The mission also provided practical guidance on monitoring tools, risk indicators, reporting practices, and the supervision of digital bank onboarding and conversion processes.
