دور السياسات الاحترازية في الاستقرار المالي للقطاع المصرفي في ظل التحرير المالي- تجارب دول مختارة مع إشارة خاصة للعراق

(The Role of Prudential Policies in Financial Stability of the Banking Sector Under Financial Liberalization – Experiences of Selected Countries with a Special Reference to Iraq)

abstract

Macroprudential policies are considered among the most prominent and essential policies designed to prevent or mitigate systemic risks that threaten the financial stability of the banking sector. Through their various tools, which differ from country to country based on the nature of the economy, these policies can achieve the sustainability of financial stability in the banking sector, which is one of the most important components of the financial system. Based on this, the research aimed to examine the reality of macroprudential policies and the paths of their development, as well as to analyze the reality of the sub-indicators that make up the composite financial stability index of the banking sector in the sample countries and Iraq. Additionally, the study analyzed the macroprudential policies in these countries, the tools used, and their role in achieving financial stability for the banking sector, highlighting the most important measures and actions related to macroprudential policies that should be followed to strengthen the banking sector in order to face the systemic risks it may be exposed to.
In this context, the latest econometric models (ARDL) were used, which are suitable for interactions between the study variables, to explore the relationships between the study variables represented by the macroprudential policy tools used in the sample countries and Iraq and the financial stability index of the banking sector in these countries.
One of the main findings of the research is the existence of relationships between some tools of macroprudential policy and the financial stability index of the banking sector in both the short and long term for the sample countries and Iraq separately. The use of macroprudential policy tools, whether through tightening or expansion, depends on the nature of the current or expected economic situation in the country over the coming period.
In light of these results, the research proposed a set of recommendations, the most prominent of which is the necessity of following up on the latest developments in macroprudential policies, benefiting from international experiences, and using the latest tools approved by international financial institutions, in line with the economic situation of each country. It is also essential to make further efforts to maintain and sustain the financial stability of the banking sector, as it is a fundamental pillar of the financial stability of the system, which in turn reflects on the overall economic stability of the country. Furthermore, the development of financial markets in Iraq is crucial to expanding the central bank’s ability to direct macroprudential policy tools in achieving sustained banking stability, which ultimately impacts the financial stability of the system.