Bank financing to the private sector and its impact on selected macroeconomic variables Iraq is a case study for the period from (2004-2021)

A letter Submitted to the

Council of the of the College of Administration and

 Economics-University of Karbala

Which is part of the requirements for obtaining a master’s degree in

Economic Sciences

Submitted By the student

Shaimaa Abdel Amir Sad Al-Asadi

Supervised by

Prof. Dr

Talib Hussein Fares Al-Kuraiti

Abstract

The research covers the studying of the problem of the relationship between bank financing for the private sector and its impact on overall variables by studying the facts that presented by economic theories, research and studies, and then studying the case of Iraq by collecting and analyzing the facts and the data which related to the variables studied. The research problem is asking about What are the dimensions of the problematic relationship between banking finance and the private sector and its impact on the selected macro variables, in light of the developments in the reality of the banking sector and the private sector in Iraq during the period of the study, The research hypothesis is that the developments in the reality of the banking sector and the private sector in Iraq during the period of the study  led to varying relative changes in bank financing to the private sector, with a limited impact on the selected macroeconomic variables, which provides a better analytical basis for understanding the path of development of the relationship and the studied problem. The most important objectives of the research were to determine the dimensions of the relationship between bank financing and the private sector and its impact on the variables. Macroeconomics in Iraq,. The importance of the research was represented by the growing interest in the theoretical and empirical relationship between bank financing for the private sector and macroeconomic variables within the framework of the philosophy of development and growth existing in Iraq after 2003 and the essential role of the private sector through the market economy.The research adopted the deductive approach, by relying on the study of theories, postulates, general rules, and partial applications in economic theory on the relationship between bank financing of the private sector and macroeconomic variables, and by collecting and analyzing economic facts and relevant historical data, and employing them in the study of the Iraq case , in addition to adopting the inductive approach by developing hypotheses among the studied relationships, and measuring and analyzing the relationship between variables using statistical and econometric analysis tools                                                                                                .The research reached a set of conclusions, the most important one is the weak impact of bank financing to the private sector on macroeconomic variables, due to the limited size of the bank financing market and the weak capabilities of the private sector to access and employ the financing. The most prominent recommendations were the necessity of following an economic policy to bridge the gap between bank credit policies. And the capabilities of the private sector to access financing through an integrated vision, by addressing the factors that affecting the reasons for the weak growth of the financing market and the capabilities of investment and saving in the private sector.