Trade Bank of Iraq

Trade Bank of Iraq (TBI) is an Iraqi state-owned commercial bank headquartered in Baghdad. It was established on 17 July 2003 by the Coalition Provisional Authority as an independent government financial institution, shortly after the end of the United Nations Oil-for-Food Programme. Its original mandate was to help restore and facilitate Iraq’s import and export activity by providing trade-related banking services, including letters of credit, letters of guarantee, foreign-exchange services, remittances and project-related finance. TBI began operations with a strong international orientation. During its first year, an international banking consortium led by JPMorgan Chase provided technical assistance, banking expertise and support for the issuance and confirmation of letters of credit and letters of guarantee. Correspondent-bank relationships became a central part of the institution’s ability to connect Iraqi public-sector trade with international suppliers and financial institutions. The bank subsequently developed a broad correspondent network spanning multiple countries and cities. The bank’s initial customers were Iraqi ministries and public-sector corporations, and its early trade-finance activity focused on public-sector imports. In 2005, TBI broadened its customer base to include private-sector companies and individuals, while also beginning to provide private-sector credit facilities and loans. Over time, it expanded beyond its original trade mandate into a broader commercial and retail banking institution. Its product range includes current and savings accounts, term deposits, certificates of deposit, payroll accounts, priority banking, payment and settlement services, debit and credit cards, automated teller machines, point-of-sale services, electronic commerce, cash management, foreign exchange, trade finance, personal loans, vehicle finance, working-capital facilities, term finance and project finance. The bank also offers financing to salaried customers who receive their wages through TBI accounts, including facilities for vehicles, housing and other personal needs. TBI has developed a domestic branch network covering Baghdad, Erbil, Sulaymaniyah and cities in central and southern Iraq, including Basra, Najaf, Karbala, Hilla, Kut, Nasiriyah, Amarah, Ramadi and Tikrit. Its international presence has included a representative office at Abu Dhabi Global Market, opened in 2017, and a Riyadh branch opened in 2019. These offices support the bank’s international connectivity and relationships with customers, counterparties and financial institutions. The bank remains positioned as a major Iraqi provider of trade and commercial banking services, combining state-backed institutional status with retail, corporate and project-finance offerings. Publicly available reference material describes a strategy focused on strengthening capital, assets, correspondent relationships, branch coverage and the breadth of services available to Iraqi businesses, government entities and individual customers.

Trade Bank of Iraq was created on 17 July 2003 by the Coalition Provisional Authority as an independent government financial institution. Its formation responded to the need for a functioning banking channel for Iraqi imports and exports after the United Nations Oil-for-Food Programme ended. The institution was licensed by the Central Bank of Iraq and began operating approximately one month after the decision to establish it. The bank’s initial mandate was focused on trade facilitation rather than universal retail banking. It was designed to provide Iraqi ministries and public-sector enterprises with access to international trade instruments, particularly letters of credit and letters of guarantee. In its first year, TBI worked with an international banking consortium led by JPMorgan Chase. The consortium supplied technical assistance and banking know-how and supported the issuance and confirmation of trade instruments on TBI’s behalf. This relationship helped the new bank connect Iraqi public-sector purchasing with overseas suppliers and correspondent institutions. TBI’s original customer base consisted primarily of government ministries and state-run corporations. In 2005, the bank widened its activities to include private-sector companies and individual customers, and it began extending private-sector loans and other credit facilities. This transition marked the beginning of its development from a narrowly focused trade institution into a broader commercial bank serving government, corporate and retail segments. As its business developed, TBI expanded its correspondent relationships and built a wider range of banking products. Trade finance remained central, but the bank added deposits, payroll services, payment and settlement systems, foreign exchange, cards, electronic commerce, cash management, personal lending, vehicle finance, working-capital facilities, term finance and project finance. It also introduced priority banking and certificates of deposit among its deposit and wealth-related offerings. The bank’s physical network grew across Iraq. Its domestic offices included locations in Baghdad, the Kurdistan Region’s main cities of Erbil and Sulaymaniyah, and several central and southern cities such as Basra, Najaf, Karbala, Hilla, Kut, Nasiriyah, Amarah, Ramadi and Tikrit. The branch network was intended to support both the bank’s national commercial role and its growing retail customer base. TBI also pursued a limited international footprint. On 26 November 2017 it opened a representative office at Abu Dhabi Global Market in the United Arab Emirates, described in reference material as its first office outside Iraq. In April 2019, it opened a branch in Riyadh, Saudi Arabia. These locations complemented its correspondent-bank network and supported cross-border relationships connected with Iraqi commerce. The bank’s financial-strengthening agenda became more prominent in the late 2010s and early 2020s. Reference material reports that its paid-up capital was increased in 2020 from the level reported for 2019, as part of a strategic plan for 2020–2023. The same material reports substantial 2016 profit and asset figures; those figures are treated as historical, time-specific disclosures rather than current performance indicators. Today, TBI is positioned as a state-owned Iraqi commercial bank whose identity remains closely associated with trade finance, international payments and the financial needs of Iraqi public and private enterprises. Its business scope also includes consumer banking, deposits, cards, payments and lending. The bank’s history reflects Iraq’s post-2003 effort to rebuild trade-finance infrastructure while integrating a government institution into international banking networks.

• 2020

  Capital-strengthening plan reported

  [1]Trade Bank of Iraqen.wikipedia.org

  The bank reported a paid-up-capital increase from the 2019 level as part of its 2020–2023 strategic plan.

• 2019

  Riyadh branch opened

  [1]Trade Bank of Iraqen.wikipedia.org

  TBI opened a branch in Riyadh, extending its international operating footprint beyond Iraq.

• 2017

  First foreign office opened in Abu Dhabi

  [1]Trade Bank of Iraqen.wikipedia.org

  TBI opened a representative office at Abu Dhabi Global Market on 26 November 2017.

• 2005

  Customer base expanded to the private sector

  [1]Trade Bank of Iraqen.wikipedia.org

  The bank began serving private-sector companies and customers and started providing private-sector loans and credit facilities.

• 2003

  Bank established

  [1]Trade Bank of Iraqen.wikipedia.org

  The Coalition Provisional Authority established Trade Bank of Iraq on 17 July 2003 as an independent government entity for Iraqi import and export finance.

• 2003

  Operations commence with international consortium support

  [1]Trade Bank of Iraqen.wikipedia.org

  TBI began operations after receiving its banking authorization and worked with an international consortium led by JPMorgan Chase on technical support and trade instruments.

A state-backed Iraqi commercial bank with a core specialization in domestic and international trade finance.

• Corporate banking · 2003

  Trade finance

  TBI’s core offering supports Iraqi importers, exporters, government entities and businesses through letters of credit, letters of guarantee, international payment services and related trade documentation. The product line is supported by correspondent-bank relationships and is central to the bank’s original mandate.

• Retail banking

  Retail banking and deposits

  The bank provides current and savings accounts, term deposits, certificates of deposit, payroll accounts and priority banking under the Jumar name. These services broaden TBI’s role beyond government and corporate trade customers and provide transaction and savings facilities for individuals.

• Payments

  Cards and payment services

  TBI’s payment portfolio includes debit cards, credit cards, ATM access, point-of-sale services, electronic commerce and domestic payment and settlement functions such as ACH and real-time gross settlement. These services support both retail transactions and business cash flows.

• Commercial lending · 2005

  Corporate and project finance

  TBI offers working-capital finance, term finance and project finance for businesses and institutions. The lending portfolio developed after the bank expanded from its initial public-sector trade role to serve private-sector companies and wider commercial needs.

• Consumer finance

  Consumer lending

  The bank provides personal loans and vehicle loans, including financing for salaried employees whose wages are paid into TBI accounts. Reference material also identifies housing and other personal requirements as uses of this financing.

• 2020

  Strengthen capital under the 2020–2023 strategic visionStrategy

  Background

  TBI’s strategic planning called for stronger financial capacity and a more robust balance sheet.

  Action taken

  The bank reported increasing paid-up capital from the 2019 level as part of its 2020–2023 plan.

  Aftermath

  The reported increase was intended to reinforce the bank’s financial position and support its strategic development.

  Paid-up capital. US$2.3 billion → US$3 billion (2019 to 2020)

  Source

• 2019

  Open a Saudi Arabian branchStrategy

  Background

  The bank continued developing an international footprint connected with its trade and correspondent-banking activities.

  Action taken

  TBI opened a branch in Riyadh, Saudi Arabia.

  Aftermath

  The Riyadh branch extended the bank’s direct presence beyond Iraq and its Abu Dhabi representative office.

  Source

• 2017

  Establish an international representative officeStrategy

  Background

  TBI sought to strengthen its cross-border presence and international banking relationships.

  Action taken

  It opened a representative office at Abu Dhabi Global Market, its first office outside Iraq.

  Aftermath

  The office gave TBI an overseas institutional presence in the United Arab Emirates.

  Source

• 2005

  Expand from public-sector trade finance to private-sector bankingStrategy

  Background

  TBI initially focused on ministries and government-run corporations and opened letters of credit primarily for public-sector customers.

  Action taken

  The bank began serving private companies and customers and started granting private-sector loans and credit facilities.

  Aftermath

  This broadened TBI’s customer base and supported its evolution into a full-service commercial bank.

  Source

1. 1Trade Bank of Iraqen.wikipedia.org
2. 2Trade Bank of Iraq official websitetbi.com.iq