Al-Rafidain Bank is incorporated according to the Law No. 33 for 1941, and started business on 19/05/1941 with a paid capital of ID 50 thousand. The Banks passed through multiple phases throughout its historical march, first represented by its existence as the first national bank exercising commercial banking among many foreign banks. Gradual expansion abroad with Iraq started, and then it passed through multiple merging phases starting from 1964 which comprised the commercial banks which were working in Iraq, when these were, in 1974, consolidated with Al-Rafidain Bank making it the only commercial bank in Iraq. It continued to work alone in the field of banking until 1988, when another State bank was incorporated; it was Al-Rasheed Bank, started its business with the Al-Rafidain Bank’s branches which businesses were transferred to it.
In 1998, the Bank witnessed another development; that is its conversion into a State company owned entirely by the Iraq goverment according to the State Companies Law No. 22 for 97, in view to participate in supporting the national economy in the field of commercial banking and investment of funds and offering of finance to various sectors according to the development plans within the framework of the States economical, financial and cash policies in various forms of investment according to the legal stipulations. The credit activity represents the most important investment transactions conducted by the Bank and is considered an important function of its business and growth; it issued several instructions pursuant to which has decided to grant mid-term loans ranging from 2 – 5 years and long term loans ranging from 5 -10 years to individuals and companies interested in order to transfer the purchasing transactions of machines, equipments and implements or constructing appropriate buildings for various agricultural and industrial purposes in addition to granting loans to medical doctors, dentists, pharmacists and engineers under certain conditions and regulations, included within this framework is granting facilities in current account and discounting and following the commercial papers which is a type of premium cash credit granted to the Bank’s customers and clients. The Bank is a leader of the governmental organizations in the field of using modern machinery in Iraq, represented by the Computer Projects, which is considered a big project matches the Bank’s standing, business and branches; as it has now real systems covering all the Bank’s activities. Systems are developed and information are updated continuously. Also, it actively participates in the development and support of Governmental and private banks in the fields of banking, investment and technical systems. The Bank currently has 164 branches in Iraq plus 7 branches abroad: Cairo, Beirut, Abu Dhabi, Bahrain, San’a’, Amman, Jebel Amman.
Departments’ Businesses and Duties
Banking Studies and opperation Department:
To issue banking instructions on the businesses of the headquarters and the branch and the powers given to all levels, conduct statistics on the Bank’s business, set up researches and studies to develop the banking business and open and merge the Bank branches as required.
It sets up the plan and prepares the allocation for the needs of the departments of the headquarters and the Bank’s branches of office and banking equipments. Also, it prints the magnetic check books for all the Bank’s branches in Iraq and for the types adopted (commercial, personal, promissory bonds) and archiving some of the Bank’s documents through the archiving systems and equipments in the division. The department consists of the following divisions and sections:
1st: Technical equipment section.
2nd: Fine imaging section.
3rd: Magnetic checks unit.
Bank Credit Department:
For the purpose of enforcement of the financial and cash policy to realize the objectives of the general management of Al-Rafidain Bank in the field of investment of its capital and the amounts deposited with it, the businesses and duties of the division are summarized in the business of its sections consisting of the loan subdivision which grants commercial loans to participate in supporting the Iraqi economy and eradication of unemployment, in addition to the subdivisions of banking credits (of our branches in and outside Baghdad). It specializes in facilitating the business of many businessmen and freelancers in providing them with financial liqudity and processing their businesses. In addition, there is the personal loans subdivision which granted personal loans to all civil servants plus it formerly granting loans to retirees and journalists and marriage loans… etc., and the credit information division which includes the following subdivisions: feasibility study, following payment of transfers, following up debts collection. Its task is to guarantee maintaining the Bank’s money through auditing and identifying the obligations of customers before granting them in addition to following up the feasibility of their applications in all fields, following up the payment of transfers and following up the payment of the Bank’s debts.
Risk Management Department
1- To set up the future vision of the department’s business to limit the risks facing the Bank’s business.
2- To study, determine and cure the credit and noncredit risks of the headquarters’ and branches’ departments and divisions in coordination with such divisions through supervision on their activities.
3- To indicate the potential risks and evaluate their impacts and results.
4- To establish suitable solutions for the risk management and following up the same to identify the extent of their suitability.
It is responsible for supplying the Bank’s divisions and branches with furniture, fire extinguishers; maintaining the same. It provides transportation buses for the headquarters’ employees and follows up the personnel’s affairs, the private guards’ affairs and any security procedures of any branch. The department consists of the following divisions and sections.
1st: Administrational section.
2nd: Print section.
3rd: Warehouses and depots section in Al-Elwiya.
4th: Carpentry factory.
5th: Security and protections affairs following up unit.
Internal Audit Department:
This department is directly connected to the General Manager and is responsible for realizing the active control on the Bank’s assets, accounts and records, following up the banking instructions and complying with the laws and decisions passed to regulate work progress through control reports forwarded to the General Manager and conducting investigation in the cases requiring the same, in addition to following up the reports if the Board of Supreme Audit and the Central Bank of Iraq on auditing the accounts of the Bank’s branches. The department consists of the following section and subdivision:
1st: Field auditing section.
2nd: Auditing and control reports section.
3rd: Office checking section.
4th: North, south and midland auditing offices.
5th: Spiritual auditing unit.
6th: Bank’s prior auditing unit.
Real-Estate and Engineering Affairs Department:
This department sets up the
plans and lists of quantities of the buildings of Bank’s
branches and purchasing lands and properties that
can be used for building branches thereon and lease the properties to others in Baghdad and other provinces. It installs, supplies and repairs the securiety doors and safes and supervises the installation of the cameras system, early warning and fire systems. The department consists of the following sections and units.
1st: Building engineering section.
2nd: Building maintenance section.
3rd: Properties section.
Human Resources Department:
This department is responsible for the employees affairs (leaves, confirmation letters, authorizations, appointments, pensioning off, resignation, promotion, bonus, penalties, appraisals, transportation, contracts, training courses, employees requalification). The department consists of the following sections and subdivisions.
1st: Bank employees’ retirement section.
2nd: Correspondence section.
3rd: Preparation and training section.
This department is responsible for the Bank’s internal and external issues. It follows up collection of outstanding obligations owed to the customers delinquent in payment, institutes lawsuits against those who default in payment and counterfeiters, pleading in such lawsuits by attorneys at law. The department consists of the following sections and subdivisions:
1st: Financial settlement section.
2nd: Internal relation section.
3rd: Rights section.
4th: forgien section.
5th: Legal advice section.
6th: Execution and sale of mortgaged properties section.
7th: Contract execution section.
Considered the Bank’s window overlooking the outside world, this department is responsible for organizing the Bank’s foreign relations with the international correspondent banks and institutions and managing the foreign accounts, as well as execution much of the Bank’s foreign business which can be summarized as follows:
1- Institution of banking relations with foreign banks after considering their financial position and writing reports thereon.
2- Opening and feeding accounts with the correspondent banks, as well as opening accounts with the department for the correspondent banks.
3- Investment of the surplus of balances as deposits with the correspondent banks and following up the interests calculated.
4- Feeding the capital of our foreign branches and receiving and auditing the statements and notices coming therefrom and resulting from various banking oppertions it conducts, as well as watching their balances.
5- Following up the Bank’sshares in the capitals of foreign banks and the interests and profits realized therefrom.
6- Issuance of letters of guarantee in favor of the governmental departments and the private sector according to request from the correspondent banks and our foreign branches, under their full responsibility towards us.
7- Transfer of amounts to the beneficiaries abroad through our foreign branches and correspondent banks and receiving the transfers incoming therefrom and delivering them to the beneficiaries inside Iraq.
8- Opening the Governmental import documentary credits forwarded from the Trade Bank of Iraq (TBI).
9- Issuance of the foreign currency rate bulletin, providing them to the State departments.
The department saves and supplies Iraqi and foreign cash and financial stamps, saves valuable assets and documents of the Bank and withdraws the cash surplus from the branches. The department consists of the following sections and unit:
1- Accounting section.
2- Iraqi cash section.
3- Foreign cash section.
4- Other assets section.
1- Setting up the uniform financial statements within all the Bank’s branches (profit and loss budget) in addition to setting up statistics greports and statements related to the Central Bank of Iraq and the Board of Supreme Audit as well as enforcement of the mof's letter regarding the opening, closing and transfer of the Governmental current accounts.
2- Execution of all cash disbursement transactions within the limits of the required allocations.
3- Settlement of the outstanding amounts of the branches between them, in addition to the Central Bank of Iraq, following up the balances of the domestic banks private sector and working on un-disclosing them and watching the accounts of banks opened with the Central Bank for the purpose of determining the cash liquidity, in addition to the work of the clearance section.
4- Conducting all financial transfers of the Bank with other banks participating in the payments system.
The ITC department designs and programming the software relate to the banking systems and execute the same in the departments, divisions and branches of the Bank through its technical staff available in the headquarters and the technical supports centers in the provinces. Also, the department conducts maintenance of printers, computers and UPS and supplies the branches and the headquarters with computers and other equipments. The department has technical staff specializes in software and maintenance of electronic equipments. Also, the department holds training courses to develop the banking staff on the operational banking systems, in addition to the specialized technical courses, where there is a training curriculum is set up throughout the year which includes the technical courses in the fields of computers and banking system.