The role of monetary policy in enhancing bank credit in Iraq for the period (2005-2021)

Abstract

Monetary policy plays an important and influential role in bank credit by directing it through direct and indirect methods, which improves economic performance and financing activity for productive activities. The research aims to analyze the relationship between monetary policy represented by the broad money supply and some of its indirect tools and bank credit provided by commercial banks. Weak, the research problem lies in the fact that the Iraqi economy lacks investment of all kinds due to weak financing activity, so commercial banks bear part of the responsibility to stimulate local investment activity and support the gross domestic product, and since the economy is rentier, there are other trends in the economy that are more influential in Bank credit is one of the tools of monetary policy, due to the distortion of production relations and the regression of the economy in exchange transactions and foreign trade. The research found the inconsistency between the temporal trend of the broad money supply and the tools of monetary policy in bank credit during the research period.