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Banks, credit, financial depth between Iraq and international experience
February 21, 2018
(Dr. Ahmed Abreu Ali) Banks, credit, financial depth between Iraq and international experience... Click here
https://cbi.iq/static/uploads/up/file-151920894918754.pdf
The research presents an overview of the banking activities in Iraq in comparison with the typical patterns of financial sector characteristics and developments in the world.
Therefore, Major determinants of the financial depth and credit in Iraq have been thoroughly investigated to identify structural impediments and the potential role for better financial policies.
In this regard, the research provides quantitative analysis to highlights the relationships between money and the components of banking sector balance sheet.
Although, the banking credit to private sector is much below the average in middle income economies, the financial depth in terms of broad money and credit to GDP has increased substantially beyond the initial conditions.
Considering the prospects for a higher level of credit to private sector, limited total available deposits will be a major constraint.
Regarding market efficiency, Distortion of interest rate structure, and insignificant effect of lending rate on credit, needs to be addressed by a new set of policies.
Also, banking non-credit activities and non-interest income in addition to assets quality and impaired loans have negative consequences shaping the banking performance in Iraq.
And to deal effectively with these problems and deficiencies, an integrated approach has become a requirement, and more research efforts may provide some inputs to embark on a critical reform.
Key Words: Asset quality; Capital Adequacy: Return on Equity; Non-Interest Income: Financial Deepening.
Paper continues in Arabic
Banks, credit, financial depth between Iraq and international experience
February 21, 2018
(Dr. Ahmed Abreu Ali) Banks, credit, financial depth between Iraq and international experience... Click here
https://cbi.iq/static/uploads/up/file-151920894918754.pdf
Banking,Credit, and Financial Depth
Dr. Ahmed Ibraihi Ali
ABSTRACT
Dr. Ahmed Ibraihi Ali
ABSTRACT
The research presents an overview of the banking activities in Iraq in comparison with the typical patterns of financial sector characteristics and developments in the world.
Therefore, Major determinants of the financial depth and credit in Iraq have been thoroughly investigated to identify structural impediments and the potential role for better financial policies.
In this regard, the research provides quantitative analysis to highlights the relationships between money and the components of banking sector balance sheet.
Although, the banking credit to private sector is much below the average in middle income economies, the financial depth in terms of broad money and credit to GDP has increased substantially beyond the initial conditions.
Considering the prospects for a higher level of credit to private sector, limited total available deposits will be a major constraint.
Regarding market efficiency, Distortion of interest rate structure, and insignificant effect of lending rate on credit, needs to be addressed by a new set of policies.
Also, banking non-credit activities and non-interest income in addition to assets quality and impaired loans have negative consequences shaping the banking performance in Iraq.
And to deal effectively with these problems and deficiencies, an integrated approach has become a requirement, and more research efforts may provide some inputs to embark on a critical reform.
Key Words: Asset quality; Capital Adequacy: Return on Equity; Non-Interest Income: Financial Deepening.
Paper continues in Arabic
