Abstract

Impact of Banking Distribution on SME Funding: The Case of Iraq

Ali H. N. BniLam

Volume: 11 Issue: 1 2021

Abstract:

The research was aimed at measuring the orientation and type of relationship between the number of banks in Iraq and the rate of banking penetration on the one hand and the financing obtained by small and medium-sized enterprises (SME) on the other. The research has been informed of the problem of small and medium-sized enterprises in Iraq, especially when it comes to determining the need for a source of funding. And The banking sector in Iraq suffers from a small number of banks and poor banking penetration, to prove the research assumptions which asserts that there is a statistically significant relationship between the number of Iraqi banks and the rate of banking penetration and small and medium-sized enterprises. The standardized quantitative approach was used. The research concluded the rate of banking penetration does not help finance small and medium-sized enterprises, unlike the number of banks. Therefore, granting bank branches the powers to levy and grant financing to small and medium-sized enterprises, which will be reflected in increasing the financial capacity and investing liquidity, noting that these arms will have a higher capacity to monitor and follow up the development of these projects.

DOI: http://doi.org/10.37648/ijrssh.v11i01.016

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