THE BANKING SYSTEM AND ITS ROLE IN ACHIEVING ECONOMIC DEVELOPMENT IN IRAQ

The banking system, through the work of banks, has a major role in achieving economic development in various countries, whether developing or developed countries, through the financing methods provided by banks to various productive sectors in the country for economic development. Many developed countries consider the development of banking activity in them one of the basic indicators to measure the development in economic activities through increasing banking awareness among individuals, represented by individuals depositing their money and savings with banks, i.e. increasing public confidence in banks, and this is due to the economic, political, security and stable conditions of the country. Investment of that money by banks by lending it to individuals and other institutions with a certain interest, especially in financing investment projects and within an agreed period of time, and this means achieving Economic development in the country, especially if these loans are used in productive investment projects. Therefore, it can be said that banks contribute to achieving economic development through their contribution to the formation of GDP, but the percentage of their contribution is low in Iraq compared to developed countries because the gross domestic product in Iraq depends largely on the contribution of the revenues of the oil sector in its formation as a rentier country and the productivity of its other sectors are almost suspended due to the conditions of the problems experienced by Iraq. Therefore, we recommend activating the role of banks in Iraq by increasing banking awareness among members of society and encouraging individuals to deposit and borrow from banks and using these loans to finance productive economic investment projects through banks' selection of good projects and financing them in order to achieve the economic development of the country.