The commercial banks of Iraq are expanding their business activities in Iraq and all over the world to facilitate the business operations worldwide. The Central bank of Iraq is opening its branch in UAE to facilitate its customers abroad. The branch will be fully operational in 2014 as announced by Cihan Bank representative. The Cihan bank is a private bank and is registered as a private limited company with the paid up capital of 250 billion Iraqi dinars.
The local commercial banks of Iraq are expanding their business and enhancing their business activities in the country and outside the country. The foreign banks are also opening their new branches in the different areas of Iraq and due to this participation, the banking services in Iraq are becoming more compatible in the country than before. The services in the country are now cheap and the quality of these services is better and this is all due to the competitive environment between local and foreign banks.
The banking environment of Iraq has been converted into competitive from a monopolistic environment which so good for a common user. The activities of Cihan Bank show that the commercial banks of Iraq are now keen to provide better services to their customers to compete the foreign banks in Iraq like City Bank of United states of America and Standard Chartered Bank of United Kingdom. The central bank of Iraq is also so satisfied with the recent development in the banking structure and it will also help the central bank of Iraq to implement its monetary policy in the presence of foreign banks.