The Impact of Stocks Traded in the Iraq Stock Exchange on Bank Credit Rates for the Period 2008–2023

Authors

Waleed Ashour Khalid, Assistant Professor, University of Dhi Qar - College of Administration and EconomicsFollow

Abstract

Trading volumes are one of the most important indicators of liquidity in financial markets. Although the Iraqi banking system has experienced liquidity turmoil since 2003, this has led to a significant decline in the stock market. This study aims to investigate the impact of trading volumes on bank credit in the Iraq Stock Exchange. Based on a sample of 60 companies listed on the Iraq Stock Exchange and 18 banks, the study spanned a 15-year period, from 2008 to 2023. Using the least squares method, we demonstrated the relationship between the liquidity of stocks traded in Iraqi financial markets and bank credit ratios. We found that low stock liquidity has a positive impact on bank liquidity. Furthermore, using an autoregressive error correction approach, we concluded that low stock liquidity is less sensitive to low bank liquidity than the inverse relationship.

Keywords

Stock market, Liquidity, Traded stocks, Bank credit

Recommended Citation

Khalid, Waleed Ashour (2025) "The Impact of Stocks Traded in the Iraq Stock Exchange on Bank Credit Rates for the Period 2008–2023," Muthanna Journal of Administrative and Economics Sciences: Vol. 15 : Iss. 3 , Article 2.
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