CBI sources say there is no limit on the number of new licences it could award. Banks have until 24 May to submit applications. HSBC, Standard Charteredand National Bank of Kuwait were awarded licences in the first round (MEED 5:3:04).

Banks obtaining foreign licences can enter the country in three ways: by acquiring a majority stake in an existing Iraqi bank; by opening a greenfield subsidiary; or by establishing a branch. Subsidiaries are required to have minimum capital of New Iraqi Dinars (NID) 50,000 million ($33 million). New applications should include commitments to:

Start operations within six months;

Geographic diversity;

Lend to multiple sectors;

Domestic and international cash management and payment products;

Modern banking techniques and to train locals for management positions.