The Kurdistan Regional Government (KRG) has started restructuring its banking sector by reducing the number of commercial banks across the region. At the same time, authorities are taking steps to expand the Kurdistan National Bank, which will become the main institution for providing banking services and managing financial transactions.
The reform is part of a broader effort to modernize the financial sector and improve access to banking services. Officials plan to merge several commercial banks instead of maintaining a large number of separate institutions. The government believes this approach will create a stronger and more efficient banking system.
According to information from the Ministry of Finance and Economy, the restructuring process is already underway. Only eight commercial banks now remain in Erbil Governorate after the latest round of consolidation. Authorities have also begun reducing bank numbers in Sulaymaniyah and other areas. The plan will continue until only 17 commercial banks operate across the Kurdistan Region.
The reform has slowed in some locations because more than 100,000 public employees have not yet registered for the MyAccount salary system. Many of these employees still receive their salaries in cash. Until every salary becomes digital, local government offices will continue working with commercial banks to process payments.
Meanwhile, preparations for the Kurdistan National Bank have entered their final stage. The government is appointing managers and department heads before opening the new institution. Existing banking and financial departments will become part of the National Bank’s structure.
Authorities recently organized written examinations to recruit 64 managers and assistant managers for different departments. Around 150 finance professionals and government employees took part in the tests. However, fewer than 20% achieved a passing score. Most candidates received between 50 and 70 points.
Officials have now arranged additional training courses for unsuccessful applicants. Candidates must score more than 70 points in the next examination to qualify for leadership positions at the bank.
The next phase of the project will include opening Kurdistan National Bank branches across all governorates and independent administrations. Authorities will also recruit administrative staff to support the new branches. The government expects the reforms to strengthen financial management, expand digital banking, and improve banking services for citizens throughout the Kurdistan Region.
