Strengthening the capital of Iraqi banks: "Analyzing the reality ‎and tracking the impact on economic activity"‎

Abstract

This research aims to identify the methods and mechanisms used by banks to increase their capital, taking into account modern approaches, and to demonstrate the role of capital size in enhancing financial stability and boosting banks' creditworthiness. The research assumes that capital increases would have an indirect impact on Iraqi economic activity. However, the study concluded that there is no clear impact of capital increases. Regarding stability, it is observed that Iraqi private banks do not engage in high-risk investments. As for boosting banks' creditworthiness, it remains very low during the study period, with credit granted by private banks not exceeding 20% ​​of total credit granted.