Authorities in the Kurdistan Region are preparing a major overhaul of the banking sector. The plan aims to simplify the system and improve efficiency. As a result, officials will close many specialized banks in the Kurdistan Region.
According to available information, 20 out of 28 specialized banks will shut down. Meanwhile, only eight main banks will remain in operation. In addition, the reform will also target commercial banks. Officials expect to reduce their number within two months. However, they have not yet announced the final figure.
A source from the Ministry of Finance and Economy confirmed that the process has already started in Sulaymaniyah. However, work in Erbil and Duhok has paused for now. This delay happened because the Director General of specialized banks retired. Nevertheless, authorities expect to complete legal and administrative steps next week. After that, the reform will move to a new phase.
Under the new plan, each major area will keep only one specialized bank. These areas include Erbil, Sulaymaniyah, Duhok, Halabja, Zakho, Soran, Garmian, and Raparin. On the other hand, banks in smaller districts will close. In some cases, they may convert into small offices if needed.
After finishing this phase, the Ministry will turn to commercial banks in the Kurdistan Region. Currently, there are 94 such banks. Therefore, reducing them will be a complex task. One major challenge involves employees who may lose their positions.
To address this issue, the government plans to redistribute workers. Specifically, it will assign them to other public institutions based on their skills. This approach will help retain their experience. At the same time, it will ensure that public services continue without disruption.
