Measuring the Impact of Some Variables of the Banking Sector and Analyzing its Role in Financing Public Debt in the Iraqi Economy for the Period (2004-2023)
DOI:
https://doi.org/10.51699/ijbde.v4i4.717Keywords:
Public Debt, Banking Sector, Bank Credit, Bank Deposits, Bank CapitalAbstract
The research aims to clarify the impact of the banking sector on the financing of public debt in Iraq for the period (2004-2023), with a focus on the impact of the development of the banking sector on the level of public debt, and the distributed slowdown autoregression model (ARDL) was used to analyze the relationship between independent variables and public debt in Iraq, the research included three independent variables: total bank deposits, bank capital, and total bank credit, while public debt was used as a dependent variable. The results of the research indicated that there is a significant long-term relationship between independent variables and public debt, which reflects the importance of the role of the banking sector in financing public debt, and the results also showed a significant positive effect of both bank deposits and total bank credit on increasing public debt, while the effect of banks' capital was less clear, and the research recommends promoting and expanding the scope of financial inclusion and enhancing financial stability, and improving the efficiency of the use of banking capital, with the aim of enhancing the banking sector's ability to finance public debt in a sustainable manner and increasing the government's ability to finance its financial needs.
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