Under the patronage of His Excellency the Chairman of the Securities Commission, Mr. Faisal Al-Haimus, a workshop was held at the headquarters of the Iraq Stock Exchange entitled

(The Impact of Banking Reforms on Stock Prices in Iraq Stock Exchange)

The workshop was attended by Ms. Nagham Hussein Ismail, Deputy Chairperson of the Iraqi Securities Commission, along with representatives of the Iraq Stock Exchange, including Mr. Dhulfiqar Hafez, Chairman of the Board of Governors, and Mr. Ali Jamal, Chief Executive Officer. The event also brought together relevant stakeholders and a distinguished group of experts and specialists to discuss recent developments in the banking reform file and their implications for the performance of the financial sector and the stock market.

Participants emphasized the importance of accelerating the completion of the banking reform program requirements, stressing that prolonging the current procedures negatively affects investor confidence and impacts trading activity and liquidity levels in the market.

The workshop called on the Central Bank of Iraq to expedite its steps and push toward finalizing the outcomes of Oliver Wyman, the firm responsible for the evaluation and reform process. It also stressed the need to exempt banks that have fulfilled the required conditions and standards and to lift restrictions imposed on them, in order to enhance regulatory fairness and restore balance to the market.

The importance of promptly identifying the human resources assessment firms for banks that have chosen the banking reform path was also emphasized, paving the way for their return to conducting remittance activities.

Market representatives noted that the continued restrictions on certain banks—despite some having met the necessary requirements—create uncertainty and influence investors’ decisions. They affirmed that clarity regarding the status of banks would positively reflect on financial stability and market confidence.

Participants further warned that imposing additional conditions related to significantly increasing banks’ capital could lead to selling pressures on banking stocks, contributing to price declines and undermining reform efforts aimed at strengthening confidence and deepening the financial market.

It is expected that in the coming days, the Iraqi Securities Commission and the Iraq Stock Exchange will formulate a package of official recommendations to be submitted to the Central Bank of Iraq, the Prime Minister’s Office, and Oliver Wyman, in the hope that these proposals will be taken into consideration within the ongoing reform process, achieving a balance between compliance with international standards on one hand and protecting market stability and shareholders on the other.