Vol: 11, Issue: 4 2021

Page: 099-112

The Effect of Bank Financing on Economic Growth in Iraq for The Period From (2004-2017)

Halah Abdulillah Habeeb Mahmoud, Dr. Taameem Mohamed Salloum

The Iraqi banking sector witnessed many reforms after 2003, represented by the issuance of several laws, including those regulating the work of monetary policy, such as Law 56 of 2004, which allowed the Central Bank to be independent, after it was a tool for financing the government budget deficit, as well as restoring confidence in the local currency and confronting inflation. Similar to that, the commercial banking sector witnessed the issuance of Law 94 of 2004, which granted banks the freedom to expand credit ceilings, and left the setting of the creditor and debtor interest rate. The government played the largest role in covering the market with the necessary financing, through the expansion of the granting of loans in all its forms, through the seven banks (Al-Rafidain, Al-Rasheed, the Iraqi Trade Bank, Al-Nahrain Islamic Bank and the three specialized banks) in light of a clear decline in the contribution of private commercial banks to the topic of discussion. The role of government commercial banks in stimulating economic growth, for the period 2004 .