The role of banking activities in developing local savings in Iraq for the period 2005-2019

Abstract

The development of banking activity by virtue of technological development, and it has taken new horizons towards a joint contribution to building societies and the economy. And that banking developments would stimulate an increase in domestic savings. and employing them in order to serve the overall economy. Research objective: Analyzing the relationship between banking activities and the level of domestic saving, the research hypothesis: the conditions of economic instability are negatively reflected in the level of banking activity and then the deterioration of the level of domestic saving. The research found an imbalance in the structure of current deposits and the government sector, the central government, and public institutions, with limited local savings and weak interest rates to stimulate local savings. The economy, adopting a savings policy that suits the Iraqi economy and adopting new savings containers to avoid more savings and redistribute these savings efficiently in financing economic activities by raising the efficiency of financial and monetary institutions.