The possibility of financial stability in Iraq after 2003

A.P.D. Amr Hisham Mohammed A.D. Mazen Dawood Salman

Abstract

 Interest in financial stability issues is usually increasing in the wake of financial crises, One of the reasons for the interest in issues of financial stability as well is the speed and strength with which the contagion of external financial crises spreads to the domestic financial system, and from it to the real economy, and in a short period of time, especially in the case of crises related to the banking system, where the collapse of a bank leads to a decline in the value of financial assets in the markets to low levels, because banks are often the biggest holders. 


The concept of financial stability is not limited to how to deal with financial crises at the time they occur, but also works mainly to rehabilitate the financial sector to absorb and absorb these crises, reduce the likelihood of them occurring, and reduce the chances of their repercussions being transferred to the main components of the domestic financial sector, and thus the rest of the economic sectors in the country.


The research reached several conclusions, the most important are:



  1. Financial stability requires monetary stability, which is the ability of the monetary sector to stabilize the overall level of prices at target levels.

  2. The challenges of achieving financial stability are the decline in transparency, the increased degree of expansion and complexity of the financial system.


The most important recommendations are 


The general framework for financial stability is included in a set of criteria and indicators, which contribute to the detection of weaknesses and strengths of the system, and so that they are monitored and followed up periodically, through specific entities with the authority to take corrective action for weaknesses in normal situations.

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Authors

A.P.D. Amr Hisham Mohammed
A.D. Mazen Dawood Salman
[1]
“The possibility of financial stability in Iraq after 2003”, Soc. sci. humanities j., vol. 5, no. 01, pp. 2083–2093, Jan. 2021, Accessed: May 14, 2024. [Online]. Available: https://sshjournal.com/index.php/sshj/article/view/666
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