The banking sector was one of the most important sectors that received significant attention from Karbala's local government. In 1935 AD, the Industrial-Agricultural Bank of Karbala was established according to state law No. 51 of 1935, as this bank began providing its banking services to customers at the beginning of 1936.
In the year 1940 AD, the government decided to divide the bank into two banks, the agricultural bank and the industrial one according to state law No. 18 of 1940. The reason behind this move was the widespread demand for lending from companies and individuals in the industrial and agricultural fields, but the conditions that faced Iraq as a result of World War II have delayed the partition process until late 1946.
Due to agriculture nature of Karbala, the Agricultural Bank has opened its local branch in the holy city on August 23, 1952, and immediately began providing loans to farmers and investors to develop their agricultural fields, as Mr. Mohamed Sayyid Fakhri was its first manager, and due to the major activities made by "Rafidain Bank" since its establishment in 1941, the first branch of this esteemed bank was opened in Karbala in 1945, followed by another local branch under the name of "Karbala Branch", while the "Lebanese Bank" was the first private bank in Karbala back then, which was opened on March 9, 1958.
Source:
Karbala's Civilizational Encyclopedia, The Historical Axis, Department of Modern and Contemporary History [Vol. 2, p. 592-593].
