Impact of Political and Economic Instability on Banking Performance in Iraq
Abstract
This study examines the impact of political and economic instability on banking performance in Iraq during the period 2019–2023. The research utilizes secondary quantitative data obtained from reliable sources, including the World Bank, The Global Economy database, and reports from the Central Bank of Iraq. Banking performance is measured using Return on Assets (ROA) as the dependent variable, while the Political Stability Index, GDP growth rate, and inflation rate are used as independent variables.
The study adopts a descriptive-analytical approach and applies multiple linear regression analysis and ANOVA to test the statistical significance of the relationships between variables. The results reveal that political stability and economic growth have a positive and statistically significant effect on banking performance, whereas inflation has a negative and statistically significant impact. The overall regression model is statistically significant, indicating that political and economic instability plays a critical role in shaping banking performance in Iraq.
The study contributes to the literature by integrating political and economic instability within a unified empirical framework in the Iraqi context, providing recent evidence from a fragile, post-conflict economy. The findings offer practical implications for policymakers and financial institutions seeking to enhance banking resilience and financial stability
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References
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