The Central Bank of Iraq has partnered with the Islamic Development Bank Institute to deepen regulatory capacity across Iraq’s Islamic banking sector, hosting a five-day technical workshop in Baghdad focused on revised capital adequacy standards.
Held from February 8 to 12, 2026, the programme was delivered in collaboration with the Islamic Financial Services Board and brought together 45 participants from 23 Iraqi banks. The initiative forms part of ongoing efforts to align Iraq’s Islamic banking regulations with evolving international prudential standards and to strengthen financial system resilience.
The workshop centered on new regulations issued by the Iraqi central bank concerning the capital accord for Islamic banks. It aimed to equip banking professionals with the technical knowledge and practical tools required to implement the revised framework effectively.
Participants received in-depth guidance on the structure and objectives of capital adequacy requirements, including how they support financial stability by ensuring banks maintain sufficient capital buffers against potential losses. Sessions explored methodologies for measuring and managing credit, market, and operational risks, alongside supervisory expectations and compliance obligations.
A strong emphasis was placed on application. Through case studies, simulations, and interactive exercises, attendees examined real-world risk scenarios and discussed implementation challenges within Iraq’s banking environment. The approach was designed to bridge theory and practice, enabling institutions to integrate capital adequacy principles more effectively into day-to-day operations.
The training was led by Dr. Abozer Mohamed, Senior Islamic Finance Specialist at IsDBI, and Mohamed Omer Elamin of the IFSB Secretariat.
The collaboration reflects a broader push to enhance regulatory coherence and risk management standards across Islamic finance jurisdictions. By strengthening technical capacity at both supervisory and institutional levels, the initiative is expected to support the long-term stability and competitiveness of Iraq’s Islamic banking industry.
