The Analysis of the Impact of Bank Credit on the Economic Growth
in Iraq for the period 2004-2019
Baqer Karji Habib Al-Jubouri
Intisar Abbas Hassoun
Al-Qadisiyah University – College of Administration and Economics
Corresponding Author: Intisar Abbas Hassoun
Abstract : The bank credit is one of the most important banking services provided by commercial banks in Iraq to
investors; as well as economic units; the state institutions, apart from being one of the most important banking
activities that attract profitable revenues to commercial banks, for mediating between economic units by granting
loans and various banking facilities; In addition to the important role in financing economic activities; Banking
agencies have acquired a distinct and very important role through financial intermediation and their ability to
mobilize savings in society and direct them towards economic activities in the form of cash and pledge facilities.
Which would have a significant impact on developing and supporting the economies of countries, especially
developing countries. The situation that the Iraqi economy is going through has negatively affected various aspects of
social, economic and political life, so it has become necessary to provide an appropriate environment for the banking
system in order to raise the reality of its work more than it was and to work harder to move towards a market
economy and create the appropriate conditions, perhaps the most important of which is providing the necessary credit
for the success of This transformation has highlighted the importance of bank credit and its ability to provide the
requirements of economic growth that the country seeks to reach and this, and the research dealt with analyzing the
role of bank credit on economic growth during the study period, and the importance of research stems from the
orientation of developing countries, including Iraq, towards activating bank credit to play an effective role In
achieving economic growth, the research problem is represented in the following question:
Is there a role for bank credit in influencing economic growth? The research started from the hypothesis that bank
credit has an ineffective role in influencing economic growth. The research reached the most important conclusion,
which is that it proved its hypothesis, which states that the effect of bank credit in Iraq has a volatile and weak effect
on economic growth, due to the link between economic growth and oil production, which is linked to global oil
prices, which are characterized by instability
