The Effectiveness Of Government Banks In Supplying The Iraqi Economy With Financial Resources

Abstract

The function of granting credit and supplying the national economy with financial resources to meet the requirements and needs of individuals and institutions with funds, one of the most important functions of the banking system, that dealing with this important and very sensitive function, needs an analytical pause, as the misuse of this task necessarily means the emergence of an economic problem that would lead to a decline in economic activity in the event of a shortage of those resources, or create inflationary pressures in the event of excessive grant, it must be dealt with in a way that ensures the achievement of the desired economic goals ones. Therefore, the research came to focus on the sources of obtaining funds by government banks as they have the highest liquidity compared to other commercial banks and the areas of use of those funds, which are limited to the following: As for granting these funds as loans to persons or financial institutions, which is an indirect investment process, or the bank investing those funds directly through securities, whether stocks or bonds, the ARDL model was used. To analyze the relationship of joint integration between the resources of access to funds and areas of use, and show the existence of a long-term relationship between them, that is, the existence of a relationship of mutual integration between the funds obtained by government banks and the uses of those funds, and the study concluded the need to provide support by the government to those banks, especially paid-up capital as it represents the first line of resistance to any shock to government banks.