IF Advertorial - International Development Bank
Iraq’s banking system branching deep into technology Advancing technology in digital banking to succour clients
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he International Development Bank (IDB) was established in 2011 with an initial capital of 100 billion Iraqi Dinars and has now developed to be a paid-up capital of $210 million. IDB has established itself among the leading banks, both locally and regionally, offering commercial banking services to both corporate and retail customers. The Khalaf Abed Kareem family along with several other Iraqi investors were among the bank’s initial investors. While the Khalaf Abed Kareem family remains the biggest shareholder with 61 percent of total equity, the number of shareholders has grown to include more than 100 holders of common shares, which have been listed on the Iraq Stock Exchange since 2018. Ziad Khalaf Abed Kareem, Chairman of Board of Directors, IDB, institutionalised the firm's foundations and principles for operations. With his leadership, IDB was able to acquire a significant market share of the total corporate, small and medium enterprises (SME), trade finance, retail banking, electronic card issuing and overall local banking market. The bank has adopted International Financial Reporting Standards (IFRS) since 2017 and is abiding by the norms and regulations relating to Compliance and Anti-Money Laundering. The bank also works with Ernst & Young as external auditors to ensure both accuracy and transparency on all bank levels of operations. IDB was also rated as the Best Bank in Iraq as per the Central Bank of Iraq CAMEL rating for four consecutive years. It is also the first Iraqi Bank to engage and sign a memorandum of understanding
38 | March 2021 | International Finance
(MoU) with the IFC related to the investment side, empowering Iraq’s private sector whilst promoting economic growth. IDB has succeeded in establishing a wide network of correspondent banks in more than 10 countries around the world to support the bank’s trade finance and external transfers. Its continuous expansion strategy for its local branch network will see the bank expand new branches every year. On the other hand, IDB also expanded its operations internationally by becoming the first Iraqi Bank to establish an official presence in the UAE as well as Lebanon.
IDB playing a leading role in the reconstruction of Iraq
IDB has more than 40 percent market share of the retail banking business in Iraq, more specifically in the Central Bank of Iraq’s initiative, which is targeted at the public sector employees’ salary domiciliation where IDB has more than 250,000 domiciled accounts as of today. IDB also offers a wide range of products and services to satisfy its client’s financial needs such as different types of accounts, loans on housing, personal, travel, wedding, car, medical and education, consumer finance, cards like credit, debit, pre-paid, gift and internet, corporate payroll and cash management, billing and collection services and western union money transfers. Services for the corporate include trade, corporate and SME finance and payroll services. It is also the first Iraqi Bank to be granted Principal Membership with international companies’ Visa and
