The reality of the Iraqi banking system and ways to restructure it


  • Mohammed Sh. Hasan College of Administration and Economics, University of Duhok, Kurdistan Region of Iraq
  • Nawzad R. Zubair College of Administration and Economics, University of Duhok, Kurdistan Region of Iraq



The research sought to get acquainted with the reality of the Iraqi banking system, to provide a clear vision of this reality, to clarify its problems, and to identify weaknesses in it, and thus to present a proposal to restructure it according to its situation in order to improve it and restore confidence to it. As the research problem was represented by the inability of the Iraqi banking system to provide the required banking services in a sophisticated manner and the failure to introduce modern banking services based on advanced technologies, in addition to its inability to serve the Iraqi economy and do financial mediation in the required form and this is reflected in the form of lack of confidence in the banking system by dealers . In general, the research attempts to answer the following question, which is the reality of the banking system in Iraq, and does it need to be restructured?
To answer this question, a basic hypothesis was developed. To test the validity of this hypothesis, data related to the reality of the Iraqi banking system was collected and analyzed using a set of banking indicators and the research reached a number of conclusions, the most important of which are:
That the form of ownership used in the Iraqi banking system makes it suffer from the diseases of the government sector and its problems, including affecting the freedom of banks to take any sound banking decisions, to the extent that these decisions are in many cases inconsistent with considerations of productive efficiency,
The Iraqi banking system suffers from a high degree of concentration in the share of banks and the spread of the oligopoly phenomenon, as a group of government banks acquire a large amount of banking activity.
Depending on the findings of the research, I have presented a proposal consistent with these conclusions at the level of the banking system, in addition to other proposals that help the success of the restructuring process and the many benefits it brings to the Iraqi banking industry.


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How to Cite

Hasan, M. S., & Zubair, N. R. (2020). The reality of the Iraqi banking system and ways to restructure it. Academic Journal of Nawroz University, 9(1), 453–468.