An Analytical Study of the Iraqi Banking Sector for the Period 2004-2022

A thesis submitted to the Board of the College of Administration and Economics at the University of Karbala as part of the requirements for obtaining a Doctor of Philosophy degree in Financial and Banking Sciences.

By

Husam Abbas Ali

Supervised by

Assistant Professor                             Assistant Professor       

Dr. Ameer Ali Khalil                 Dr.  Hadeer Khayoon Ashour    

2025

Abstract

The study aimed to demonstrate the effects generated by financial depth indicators on sustainable development goals in Iraq, as well as to study and analyze the investment efficiency of the banking sector and make it mediate the relationship of influence between the independent and dependent variables, to know the indirect effects, for the period between (2004-2022). The study used many indicators to measure financial depth, as financial depth indicators were divided into two sections, the first measures the size of the financial depth of financial institutions, while the second section measures the size of the financial depth of financial markets. With regard to sustainable development goals, six goals were chosen and the indicators set by the United Nations were selected to monitor and track the goals, namely the elimination, the clean energy goal, the decent work and economic growth goal, the industry and innovation goal, the sustainable cities and communities goal, and the responsible consumption and production goal. As for the mediating variable, it was measured according to the (Biddle) model by selecting (39) private banks listed on the Iraqi Stock Exchange. The study resorted to using the multiple linear regression method to demonstrate the effects generated by financial depth indicators on The studied sustainable development goals, after conducting a stationarity test for the time series using the (EViews13) program, while the path analysis method was resorted to t show the indirect effects in the presence of the mediating variable, using the (AMOS.V26) program, and the study reached a number of conclusions, the most important of which is that the financial depth indicators in Iraq affect the studied sustainable development goals directly without mediating the relationship of influence with the investment efficiency of the banking sector, except for the unemployment rate and the percentage of urban residents living in slums, as the financial depth indicators did not show any significant effect. The path analysis method also showed that there are significant indirect effects generated by the financial depth indicators on the studied sustainable development goals when making the investment efficiency of the banking sector an intermediate variable, except for the economic growth rate, as its indirect effects were not significant. The study recommended the need to work on improving and developing financial depth indicators by paying attention to its determinants, if Iraq wants to increase the pace of achieving the studied objectives, and the need to accelerate the enhancement of credit granted to the private sector to make financial depth in Iraq more efficient in influencing economic variables and to involve private banks effectively in allocating financial resources to productive private projects.

Keywords: Financial depth, investment efficiency, sustainable development goals.