The College of Administration and Economics at the University of Baghdad discussed , a master’s thesis in field of Economic by the student (Ahmed Majeed Kazim) and tagged with (The Impact of Restructuring Government Banks on Financial Stability: Selected Experiences with a Forward-Looking Vision for Iraq) , Under supervision of (Assist. Prof. Dr. Afra Hadi Saeed ).
This study examines the impact of restructuring state-owned banks on enhancing financial stability, drawing on successful international experiences in this field. The analysis is based on the similarity between the pre-restructuring conditions of state-owned banks in selected countries and the current situation of Iraqi state-owned banks. The research is motivated by a central problem represented by the financial, operational, and administrative challenges facing Iraqi state-owned banks, which constitute a direct threat to financial stability.
To achieve its objectives, the study adopts a descriptive–analytical approach to analyze the official financial data of state-owned banks, a comparative approach to extract lessons from relevant international experiences, and a foresight approach to develop future scenarios for restructuring Iraqi banks based on trend analysis and accumulated lessons.
The findings indicate that international experiences in bank restructuring were not limited to financial treatments alone but also included administrative and operational reforms, which contributed to improving efficiency and strengthening financial stability. In contrast, the Iraqi case reveals the continued presence of structural weaknesses in state-owned banks, most notably weak capital adequacy, high levels of non-performing loans, declining liquidity, as well as shortcomings in governance frameworks and digital transformation.
Accordingly, the study concludes that the success of restructuring state-owned banks in Iraq is contingent upon the availability of strong political will and the implementation of comprehensive and integrated reforms that ensure the sustainability of financial stability.
Based on these conclusions, the study recommends the adoption of a comprehensive banking reform program that focuses on strengthening capital bases, resolving non-performing loans, accelerating digital transformation, and enhancing governance and supervisory systems. In addition, it emphasizes the importance of reactivating the developmental role of banks and reorganizing the structure of the banking market within a stable political environment, thereby contributing to the consolidation of financial stability and the promotion of sustainable economic development.
