The role of banking competition in stimulating economic growth in lraq

thesis submitted to the Council of the College of Administration and Economics – University of Karbala

It is part of the requirements for obtaining master’s degree in Economic Sciences

Submitted by the student

Duaa Faisal Ajeel Al- nsari’s

Supervising
Prof. Dr. Talib Hussein Fares Al – Kuraiti

Abstract:
 The research addressed the role of banking competition in stimulating economic growth using theoretical facts from the economic theory literature on banking competition and economic growth, as well as the effect of the level of competition on economic growth. The focus of the research mission was the basic question about the actual form of competition in the Iraqi banking market and what its effects are on stimulating economic growth. The reform still suffers from structural, regulatory and technological problems and the instability of the investment environment, as well as its weak connection to the global unitary banking system, which is due to the decline in competition in the banking sector, and thus weak competition. The reduced supply of financing at high costs had the effect of stimulating economic growth, this requires a better understanding of ways to improve banking competition that stimulates economic growth. The objectives of the research were to study the literature related to banking competition and economic growth and the relationship between them, and to benefit from it in analyzing the relationship between banking competition and economic growth in Iraq, as well as descriptive analysis of facts and data. Determine the direction of the relationship’s development, its dimensions, the nature of the factors affecting it and the possibility of its development, as well as measuring and analyzing the relationship between the variables that represent the studied relationship. The research used statistical methods and economic measurements of the relationship between the variables that represent the impact of banking competition on economic growth and reached a number of conclusions that are summarized in the fact that the improved developments in the Iraqi banking system did not reach the level of addressing the basic problems in the structure of the banking system, which is reflected in the availability of the foundations of banking competition. Competitive conditions in the banking market are completed, while the recommendations stress the need to improve the development of basic indicators and standards. The Iraqi banking sector indicators indicate further relative improvement in the characteristics of the banking market and increased relative positive growth in the requirements of banking competition.