Funds Remain Outside Banks Hindering Financial Reform Efforts in Iraq

Reforming the banking sector in Iraq represents one of the most prominent current economic challenges, highlighting the urgent need to build a financial system that supports development, stimulates investment, and restores citizens' trust in banking institutions. Despite the recent expansion of loan programs, challenges related to the lack of transparency, effective oversight, and weak technological infrastructure continue to hinder the achievement of desired goals. Economic experts argue that overcoming the financial default crisis and achieving equity in lending require the adoption of comprehensive reform programs, including the establishment of unified credit databases and reducing reliance on cash transactions in favor of digital banking systems. Experts emphasize that the shift towards electronic archiving and digital payments will contribute to curbing bureaucracy and corruption, stressing that building a modern and reliable banking sector requires genuine political will and serious investment in modern technologies to support the national economy.