Regulatory AlertsIraq: lending & credit regulation
Partially regulatedIraq lending sector: CBK-regulated banks only; non-bank lending unregulated
- Lead regulator:
- Central Bank of Iraq
- Key law:
- Banking Law No. 94 of 2004
- Last updated:
- 2026-07-12
The Central Bank of Iraq (CBI) is the primary regulator for formal credit activities, overseeing commercial banks under the Banking Law No. 94 of 2004. The provided source documents confirm CBI oversight of corporate governance within banks, including strict limits on credit extended to board members, but do not establish a licensing regime for non-bank consumer credit or fintech lenders.
Non-bank lending, including microfinance and digital consumer credit, operates in a regulatory gap with no specific licensing framework or capital requirements defined in the available sources. Consequently, while traditional bank lending is strictly regulated, alternative lending models remain largely unregulated or operate under general commercial laws without specific supervisory guidance.
The regulatory direction of travel is focused on strengthening corporate governance within the existing banking sector rather than expanding the licensed entity base to include new types of credit providers. There is no evidence of recent legislative changes introducing a dedicated regime for consumer credit or fintech lending.
Who regulates
Central Bank of Iraq
Primary supervisor of banking sector and corporate governance
[1]
Core laws & rules
Banking Law No. 94 of 2004 (2004)
The primary legislation governing banking activities and CBI supervisory powers, though specific consumer credit provisions are not detailed in the provided source.
Restrictions & warnings
Independent board members are limited to holding credit up to 5% of bank capital, indicating strict internal governance controls for licensed banks.
[1]
Direction of travel
Regulatory focus remains on internal bank governance; no clear expansion into regulating non-bank consumer credit is evident from current documents.
Low confidence — verify with the regulator before relying on this.
Sources
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