The banking sector in Kurdistan and In Iraq has a limited role in business transactions, hindering economic development due to a heavy reliance on cash that restricts opportunities for growth. An efficient banking system necessitates interbank and government securities markets to offer liquid instruments for short-term investment.
Low confidence in the banking sector in Kurdistan and Iraq stems from deposit losses during the previous regime. While rebuilding trust in the banking system is a complex, long-term process, steps can be taken to enhance public confidence in the sector. Despite the prevalent cash-based transactions in Kurdistan Region and Iraq, the Kurdistan Region has taken significant strides to enhance its banking system.
This includes the introduction of the “my account initiative,” through which civil and governmental employees are paid via bank cards (Mastercard and Visa). Over half a million employees have opened bank accounts as a result. The Kurdistan Region government has streamlined the process of opening bank accounts, making it much easier than in previous years. Now, both foreign and local nationals can open bank accounts in Kurdistan Region within minutes using mobile applications.
Additionally, there has been an increase in the number of ATMs, with over 250 new ones installed this year. Currently, there are 49 banks operating in Kurdistan, comprising 43 private banks and six state-owned banks. In this blog post we will explore some of the best Banks in Kurdistan and Iraq.
Banking sector : List of the best Banks in Kurdistan and Iraq
1.First Iraqi bank(FIB)
First Iraqi Bank (FIB) is a fully digital bank headquartered in Erbil, Iraq. Established in 2020, FIB aims to revolutionize the banking industry in Iraq by providing services that meet international security and compliance standards.
As the first fully digital bank in the country, FIB offers a range of convenient and secure online banking solutions.One of FIB’s notable features is its payments software development kit (SDK) and single-sign-on (SSO) method. With these tools, businesses can leverage FIB’s infrastructure to offer their customers a seamless login and payment experience. FIB’s SSO ensures that customers are securely authenticated during the onboarding process, adhering to international standards. This helps businesses build trust with their customers by ensuring they are not involved in any suspicious activities or associated with terrorist networks.
In summary, FIB is leading the way in digitizing banking services in Iraq, offering secure online solutions and enabling businesses to provide convenient login and payment options to their customers.
2. Cihan Bank
Established in February 2008 in accordance with the Iraqi Companies Law, Cihan Bank began its operations on April 1, 2009, with its headquarters in Erbil.Cihan Bank is a fully Islamic bank, offering a comprehensive range of Islamic banking products and services. One of the bank’s key assets is its automated banking system, which plays a crucial role in delivering efficient and prompt services to its clients.
The bank’s core banking system, iMal, is widely utilized among Islamic banks and is certified by AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions), a highly reputable entity in the Islamic banking sector.In addition to its Islamic banking services, Cihan Bank is one of the few banks in Iraq and Kurdistan that supports Google AdSense payments.
This means that YouTubers and content creators can receive their payments through Cihan Bank, providing them with a convenient and reliable financial solution.Overall, Cihan Bank is a prominent Islamic bank in Iraq and Kurdistan, utilizing advanced banking systems to offer a broad range of services to its clients, while also providing support for Google AdSense payments to YouTubers.Cihan Bank is one of the banks that supports the Kurdistan Region’s “my account initiative.”
3.Region trade bank (RT)
Region Trade Bank commenced offering financial services in the Kurdistan region of Iraq in July 2001 and established its headquarters in Erbil by the end of the same year. Licensed by the Central Bank of Iraq in September 2003, the bank operates in compliance with the country’s banking laws and is listed on the Iraqi financial market.
Region Trade Bank provides a diverse range of financial services for both companies and individuals. These services include current and savings accounts with competitive interest rates, online banking facilities, commercial financing options such as letters of guarantee and documentary credits, and support for small and medium-sized enterprises.
The bank also offers salary domiciliation services for employees of companies.Utilizing the Swift system for international transfers and the RTGS system for local transactions, Region Trade Bank enables payments in multiple currencies, including the Euro and the U.S. Dollar, through a network of trusted correspondents. RT Bank is one of the few banks in Iraq and Kurdistan that supports Google AdSense payments.
4. Rafidain Bank
Rafidain Bank, established in 1941, is the largest bank in Iraq. It operates 165 branches across Iraq and additional branches in Cairo, Beirut, Abu Dhabi, Bahrain, Sana’a, Amman, and Jabal Amman, with its headquarters located in central Baghdad.During the 1960s wave of Ba’ath nationalization, Rafidain Bank became a state-owned bank. In 1988, its non-performing assets were separated into the Rasheed Bank.
The bank faced significant challenges during the second Gulf War, with around a third of its branches destroyed and approximately $300 million lost through looting. Despite these setbacks, Rafidain Bank now holds approximately 45% of banking assets in Iraq. The bank has undergone full digitalization and offers services such as IQ card facilities and mobile banking. Through its mobile application, customers can conveniently open a bank account, enhancing accessibility and efficiency for its clientele.
