Iraq’s banking sector grows to 81 institutions

Shafaq News- Baghdad

Iraq’s banking sector has expanded to 81 financial institutions, making it one of the largest banking markets in the Middle East by the number of banks, the Eco Iraq Observatory reported on Saturday.

Describing Iraq’s banking sector as one of the most active in the region, the Observatory listed eight state-owned banks, 24 local commercial banks, 31 local Islamic banks, 16 foreign banks, and two representative offices of foreign banks. It also pointed to the rapid growth of electronic payment services, noting that the country has 20 electronic payment companies and 25 million active bank cards in circulation.

Despite the increase in the number of banks and financial institutions, the Observatory said that the sector’s economic and service role remains limited, with many institutions yet to fully adopt the technological advances that have reshaped global banking.

“Iraq still does not have a fully integrated electronic bank capable of providing comprehensive online financial services,” it stated, hailing the country’s recent efforts to modernize the financial sector, expand electronic payments, and reduce reliance on cash-based transactions.

Read more: Debt without contracts: Iraq's shadow credit market