Role of Financial Stability in Achieving Sustainable Economic Development with reference to the Iraq Experience for the Period (2010-2016

Abstract

Abstract: In view of the search for a variety of sources in order to finance comprehensive economic development, as natural resources are destined to disappear, and for the continuous development and fair distribution of wealth for the generations to come, financial stability and successive periods of time have become a fundamental and strategic objective. In the context of economic policies, the purpose of financial stability may go beyond the simple concept, which is intended not to occur financial crises, As the new concept represents a further dimension in achieving the efficiency and distribution of economic resources as well as efficiency in lending and borrowing, investment and saving operations, providing liquidity, accumulation of wealth, fixing prices and reducing the impact of financial crises if they occurred. In view of Iraq's experience, it was found that the Iraqi financial sector did not affect the process Sustainable economic development but not very limited, This is attributed to the total dependence on oil imports and the weak contribution of financial projects in economic activity, as well as the decline in the number of banks and their branches and financial institutions, as well as low turnout on the banking sector of consumers, and the dominance of government banks on the financial sector in addition to the absence of private banks or lack of role in The economic activity .