ANALYSIS OF THE ROLE OF BANK CREDIT (CASH, PLEDGE) ON THE INDEX OF THE NUMBER OF SHARES TRADED IN IRAQ FOR THE PERIOD (2009-2023(

Abstract

This research aims to analyze the role of bank credit in its two parts (cash and pledge) in influencing the index of the number of shares traded in the Iraqi stock market during the period from 2009 to 2023.

The results of the study showed that cash credit witnessed clear growth during the years of research, but this growth was not reflected directly or regularly on the volume of shares traded, which indicates a gap in the orientation of financial resources towards investment activities in the market. The impact of pledge credit was also found to be limited, owing to its non-monetary nature and its association with commercial rather than investment purposes.

These results highlight the weak institutional relationship between the banking sector and the stock market, and the decline in the ability of bank financing to stimulate trading activity, which calls for a review of the mechanisms guiding bank credit to enhance its role in supporting the financial market. And the research recommends the need to activate banking policy tools to direct financing towards productive and investment sectors, in addition to strengthening coordination between financial institutions to develop a more effective and stable investment environment