Seybold Report ISSN: 1533-9211
Prof M.Kazemi, Maram Al-Bousharbi
Vol 18, No 5 ( 2023 ) | Licensing: CC 4.0 | Pg no: 139-155 | Published on: 25-05-2023
Abstract
The research sought to show the effectiveness of banking stability indicators in GDP by measuring the impact of banking stability in financing economic development in Iraq for the period 2009/2022, as GDP is the basic building block for measuring economic development, and it is also one of the most important economic indicators that measure the level of performance The economic of the country and the most important axes of the real current in the economy. As the research problem indicates that any weakness in banking stability leads to disruptions in economic development and loss of confidence in them, which reflects negatively on macroeconomic variables and causes an increasing loss in real output, so the research problem is formulated with the following question: "Is there a relationship between banking stability indicators and GDP in Iraq?" The research was based on a main hypothesis: that the indicators of banking stability affect the GDP in Iraq and the The researcher reached a set of conclusions, the most prominent of which was that the most important indicators of banking stability that are related to GDP are: total deposits, cash credit, bank liquidity, bank capital, surplus reserves, respectively, where the percentage of contribution to the impact of these banking indicators in GDP to (90%, 78%, 78%, 52%). 51%) respectively, while the most important recommendations were to stimulate banks to move towards the market by providing bank financing and credit to the private sector that It is required to target GDP and address unemployment and economic stagnation.
Keywords:
Bank liquidity, GDP, economic stability, bank financing