Kurd Region Govt cedes control over banks to Baghdad

By Idris Okuducu

ERBIL, Iraq

Northern Iraq’s Kurdish Regional Government (KRG) has agreed to relinquish the right to operate and oversee banks in the region, the governor of Iraq’s central bank said Tuesday.

At a joint press conference with KRG Finance Minister Rebaz Hamlan, Iraqi Central Bank Governor Ali Mohsen al-Alaq said the KRG had voluntarily surrendered its right to operate, regulate and supervise local banks to the central government in Baghdad.

According to an agreement reached between the two sides, Iraq’s central bank will be made solely responsible for certifying -- and operating -- all banks in the Kurdish region.

Hamlan, for his part, did not rule out the possibility that some banks might be forced to close while others could be forced to merge with other financial institutions.