(3 February 2004 – Iraq) Standard Chartered, HSBC and National Bank of Kuwait have been granted licenses to operate in Iraq, the first foreign banks to enter the Iraqi market in decades.Iraq’s central bank is offering international banks six five-year licenses with one of the stipulations being that banks must keep minimum capital of US$25 million in the country. So far, 15 foreign banks have applied for a license to operate in Iraq.
Standard Chartered and HSBC are looking to expand their retail operations in the Middle East and have entered the Iraq market on the basis that the country’s 26 million people will be looking to put their money somewhere once confidence and infrastructure in the war torn country have been restored.