Main Article Content



Central banks exercise supervision over banks of all kinds to ensure their compliance with the provisions of the relevant banking laws, regulations and instructions, the integrity of the banking systems in force, the integrity of the procedures taken by them when practicing banking operations and the strength of their financial positions. The Central Bank exercises this control based on the provisions and powers stipulated in its law, the Banking Law and other relevant laws

They are office control After banks implement their obligation to provide the Central Bank with periodic reports and statements, the bank studies and analyzes these documents to ensure their compliance with banking legislation, including the Anti-Money Laundering and Combating the Financing of Terrorism Law, compliance with the decisions and orders issued by the bank, identifying their financial positions and ensuring their safety, and the degree of efficiency with which they exercise their functions, and the second is field control (inspection) to assess the financial condition of banks and the risks associated with their banking business and verify the integrity of internal control systems.  in which and commitment to the instructions of banking governance.

The aims of study to clarify the concept of banking inspection and its legal system and includes: the scope of inspection (temporal, objective and personal), those in charge of the inspection, the obligations of the inspector, including conducting the required inspection, commitment to confidentiality and preparing the final report, and a statement of the duties of the inspected bank in providing the required records, books and documents and providing information, a statement of the inspector's responsibility and immunity that he enjoys.                 


  1. The field supervisory supervision exercised by central banks is a necessity necessitated by the integrity of banking systems and operations and to ensure the extent to which banks comply with laws, regulations and instructions, including the provisions on combating money laundering and terrorist financing.

  2. The Basel Committee and legislators in the countries of the world, including the Iraqi legislator, were interested in developing rules governing inspections carried out by the Central Bank in implementation of its duties and to achieve the objectives of the inspection and what is the nature of the inspector's responsibility and immunity.

  3. The legal framework for bank inspection defines the temporal and substantive scope of the inspection, the obligations of the inspectors and the duties of the inspected bank.

  4. The legislative treatment of banking inspection was general, comprehensive and unified for all types of banks.

The most prominent recommendations:

  1. The need to develop detailed legal rules related to the qualifications and powers of the inspector and inspection bodies and the independence of their work

  2. Since the banks are diverse (governmental, private, Islamic and specialized), it is necessary to reflect this on the framework regulating inspection in all its aspects.

Article Details

Corporate / Business Law
Author Biography



Assistant Professor of commercial law

 University of Baghdad /  Post-Graduate Institute For Accounting and Financial Studies


First: Laws and instructions

Iraqi Companies Law No. 21 of 1997, as amended

, Banking Law No. 94 of 2004

Guidelines for the Central Bank of Iraq

Corporate Governance Guide for Banks, Central Bank of Iraq

Second: books

Al-Hindi, Adnan, Supervision and Inspection by Central Banks, Union of Arab Banks, Beirut, Lebanon, 1987.

Al-Karasneh, Ibrahim, Basic and Contemporary Frameworks in Banking Supervision and Risk Management, second edition, Arab Monetary Fund, Abu Dhabi, UAE, 2010.

Shehata, d. Salah Ibrahim, Credit Granting Controls from a Legal and Banking Perspective (Central Bank of Egypt, Banking Supervision), 2009.

Abdullah, d. Khaled Amin, Banking Operations (Modern Accounting Methods), Dar Wael for Publishing, Fifth Edition, Amman, 2004.

d. Safar, Dr. Ahmed, Arab Banking Cooperation (Expansion and Integration), Modern Book Foundation, first edition, Lebanon, 2008.

Al-Rawi, Khaled Wahib, Financial Risk Management, second edition, Al-Masirah Publishing House, Amman, Jordan, 2011.

Third: Research, letters and dissertations

Abdel Nabi, Walid Eidy, The Central Bank and the development of its supervisory role and directions of its strategic plan, Central Bank of Iraq, 2010.

Ahmed, Khoder, Supervision of Commercial Banks, Master Thesis, Faculty of Law and Political Science, Larbi Ben M’hidi University, Umm El-Bouaghi, Algeria, 2014.

Al-Zubaidi and Zaher, Dr. Hamza Faeq Wahib and Enas Ahmed, The role of supervisory control of the Central Bank of Iraq in the performance of foreign bank branches in Iraq, Journal of the University College of Economics, Baghdad, Issue 59, 2019.

Al-Fawadi, Nour Al-Huda Abdul-Kadhim Radi Hassan, The Legal System for Banking Supervision (a comparative study), a doctoral thesis in private law submitted to the College of Law, University of Baghdad, 2019.

Al-Amiri, Hawra Ahmed Salman, The Role of Inspection in Achieving Banking Compliance (an applied study in a sample of Iraqi banks) presented to the Higher Institute for Accounting and Financial Studies at the University of Baghdad to obtain a higher diploma equivalent to a master’s degree in banking, 2014.

Wahib, d. Hamza Faeq, the auditor's commitment to banking secrecy, a study of Iraqi law,

Ibrahim and Shaker, 2017, 1866.

Mubarak, Ahlam Musa, Central Bank Supervision Mechanism over Banking Business in Light of International Standards, Master Thesis, University of Algiers, Faculty of Economics and Management Sciences, Algeria, 2005.

Al-Suqayli, Muhammad Salih, Basic Principles of Effective Banking Supervision issued by the Basel Committee on Banking Supervision, Master Thesis, Faculty of Commerce, Islamic University, Gaza, 2005.

Bishara, Hammad’s feelings, the effect of immunity and legal protection for public office on criminal case procedures in Sudanese legislation, Journal of Legal and Political Thought, Faculty of Law and Political Science, Ammar Thaliji University, Al-Aghouat, Sudan, Volume One, Issue Two, 2017.

Fourth: electronic resources

Banking Supervision Instructions No. 1 dated 8/13/2003 System of Admission of Internal Banking Controllers in Banks Operating in the Syrian Arab Republic

Banking Supervision Instructions No. 2 dated 8/13/2003, the Articles of Association of the observers

In-house bankers 6

The website of the Central Bank of Libya, date of visit 10/1/2019

UAE Central Bank website, visit 11/1/2019 spx Visit date 7/16/2021

Date of visit 7/17/2022

foreign sources:

1.Mikdashi, Zuher, Les Banqes a l err de la mondialisation, edition economica, Paris, 1998.

Nasr Sahar, financial sector review of the world bank 2011 ,2.

Roos, Stephen A, Westerfield Randolph W., Jaffe Jeffery F.Corporate Finance.6th edition, copyright by Mc Graw – Hill companies Inc, USA, 2002.

Wheeb, Hamza Faeq, The auditor's commitment to banking secrecy, . Route Educational & Social Science Journal. Volume 5 (9), July 2018