The Causal Relationship between Government Borrowing from Banking Institutions and Bank Lazy

An econometric study in the Iraqi economy for the period (January 2016 – June 2022)

Thesis submitted to the Council of the College of Administration and Economics / University of Karbala as part of the requirements for obtaining a master’s degree in banking and financial sciences

submitted by

Zainab Daoud Salman

Supervised by

Assist Prof.Dr. Ameer Ali Khaleel

Abstract

Government borrowing from financial institutions may be one of the reasons for the failure of the banking sector to direct investment towards the various economic sectors and then reach what is known as banking laziness. And knowing the effect of government lending in maximizing bank laziness, as private investment in developing countries depends mainly on the availability of bank credit, so the exclusion of bank credit may have negative effects on private investment and then on economic growth, as the study relied on a set of data obtained For Iraqi banks between 2016 until June 2022, E views12 and Excel software were used to analyze the results, and the study reached a set of conclusions and the existence of a co-integration relationship between the variables of the study, but government borrowing from financial and banking institutions did not affect the volume of credit granted to the private sector. It means that the Iraqi banks did not take their role in guiding investment by granting cash credit effectively. The study recommended taking into account directing private borrowing more than the public sector in order to avoid falling into bank laziness

The Causal Relationship between Government Borrowing from Banking Institutions and Bank Lazy

An econometric study in the Iraqi economy for the period (January 2016 – June 2022)

Thesis submitted to the Council of the College of Administration and Economics / University of Karbala as part of the requirements for obtaining a master’s degree in banking and financial sciences

submitted by

Zainab Daoud Salman

Supervised by

Assist Prof.Dr. Ameer Ali Khaleel

Abstract

Government borrowing from financial institutions may be one of the reasons for the failure of the banking sector to direct investment towards the various economic sectors and then reach what is known as banking laziness. And knowing the effect of government lending in maximizing bank laziness, as private investment in developing countries depends mainly on the availability of bank credit, so the exclusion of bank credit may have negative effects on private investment and then on economic growth, as the study relied on a set of data obtained For Iraqi banks between 2016 until June 2022, E views12 and Excel software were used to analyze the results, and the study reached a set of conclusions and the existence of a co-integration relationship between the variables of the study, but government borrowing from financial and banking institutions did not affect the volume of credit granted to the private sector. It means that the Iraqi banks did not take their role in guiding investment by granting cash credit effectively. The study recommended taking into account directing private borrowing more than the public sector in order to avoid falling into bank laziness