Iraqi Banking Reforms and Their Role in Promoting Financial Stability: A Financial and Accounting Review Article

Abstract

This study aimed to analyze the role of banking reforms in enhancing the financial stability of the Iraqi banking sector from a financial and accounting perspective, with a focus on the impact of credit liberalization, bank restructuring, financial inclusion, and digital transformation. The study was based on a comprehensive review of previous local and international studies, in addition to an analysis of the financial performance indicators of a group of private and governmental banks, including profitability (ROA and ROE), liquidity, asset quality, and capital adequacy. The results showed that banking reforms have contributed positively to raising the efficiency of banks, enhancing their financial solvency, and improving asset quality, but non-performing loans and institutional and political challenges still pose an obstacle to achieving sustainable financial stability. The study also found that the effectiveness of reforms is influenced by the macroeconomic environment and the implementation of effective banking supervision and control. It concludes that combining financial reforms with advanced regulatory policies, alongside the development of digital transformation and financial inclusion, represents the optimal path to enhancing financial stability and supporting economic growth in Iraq.