The Impact of Banking Policies on Community Development in Iraq

Abstract

This research aims to study the impact of banking policies on community development in Iraq. Banking policies are identified in three dimensions: inflation, exchange rate, and interest rate. Community development will be studied through three dimensions: poverty, measured by the indicator of population below the poverty line; education, measured by the indicator of basic education enrollment rate; and health, measured by the indicator of child mortality per 1,000 births. The researcher employed a quantitative approach, relying on quantitative models to evaluate these relationships between 2012 and 2022. The research seeks to provide pathways for improvements in banking policies that can contribute to enhancing community development in Iraq and promoting citizens' welfare.

Through the analysis of historical data, impactful results were reached indicating that banking policies have a direct influence on community development in Iraq. Stable inflation and appropriate exchange rates significantly enhance poverty, education, and health indicators. Meanwhile, increases in interest rates exert pressure on community development., The researcher recommended strengthening banking policies that support economic stability, enhance educational opportunities, and improve healthcare services.