The Relationship between Banking Desertification and Poverty Rates:  Iraq as a Case Study

Ameer Ali Khaleel; Noor S. Alramadan; Sheimaa Hadi Neamah

Ameer Ali Khaleel Faculty of Management and Economics, University of Kerbala, Iraq https://orcid.org/0000-0002-3216-8882
Noor S. Alramadan Faculty of Management and Economics, University of Kerbala, Iraq
Sheimaa Hadi Neamah Faculty of Management and Economics, University of Kerbala, Iraq https://orcid.org/0000-0003-2573-3334

Keywords: banking desertification, poverty rate

Abstract

Economic and environmental factors often exacerbate the deterioration of financial services in certain regions, a phenomenon known as "banking desertification". This phenomenon could significantly impact local economies, potentially exacerbating poverty rates. The goal of the research is to understand the impact of banking desertification on poverty rates, as represented by the number of ATMs and bank branches. We selected Iraq as the case study for the period 2003-2022. We analyzed the multiple regression model using the SPSS software. The study indicates that banking deserts significantly impact poverty rates, and the number of ATMs decreases poverty rates.

References

Adeniran, A.O., Jadah, H.M. & Mohammed, N.H. (2020). Impact of information technology on strategic management in the banking sector of Iraq. Insights into Regional Development, 2(2), 592-601.
Al-Obaidi, J.R., Yahya Allawi, M., Salim Al-Taie, B., Alobaidi, K.H., Al-Khayri, J.M., Abdullah, S. & Ahmad-Kamil, E.I. (2022). The environmental, economic, and social development impact of desertification in Iraq: a review on desertification control measures and mitigation strategies. Environmental Monitoring and Assessment, 194(6), 440.
Amjad, B., Cabrera, M. & Phadera, L. (2023). The Effects of Fiscal Policy on Inequality and Poverty in Iraq. Policy Research Working Paper. World Bank Group.
Bérenger, V. (2023). Levels and trends in multidimensional poverty in Algeria, Iraq and Tunisia, using a counting-based approach. In Research Handbook on Measuring Poverty and Deprivation (pp. 710-721). Edward Elgar Publishing.
Hameedi, K.S., Al-Fatlawi, Q.A., Ali, M.N. & Almagtome, A.H. (2021). Financial performance reporting, IFRS implementation, and accounting information: Evidence from Iraqi banking sector. The Journal of Asian Finance, Economics and Business, 8(3), 1083-1094.
Hamoudi, A.B., Köppe, S. & Winston, N. (2023). Poverty at a distance: Supply and demand side factors and the formation of civil society organizations in Iraq. Journal of International Development, 35(8), 2645-2666.
Ibrahim, S.S. (2022). Customer Satisfaction with Electronic Banking Services in the Iraqi Banking Sector: a case of Duhok city banks. Academic Journal of Nawroz University, 11(3), 12-19.
iData. (2024). Accounts Types Insights. Retrieved September 20, 2024, from https://www.iraqidata.com/en/Banking-Sector.
ILO. (2024). Groundbreaking Iraqi national strategy set to reduce inequalities in the world of work. Retrieved September 20, 2024, from https://www.ilo.org/resource/news/groundbreaking-iraqi-national-strategy-set-reduce-inequalities-world-work#:~:text=With%20about%20a%20quarter%20of,in%20Iraq%20remains%20particularly%20pronounced.
Jadah, H.M., Alghanimi, M.H.A., Al-Dahaan, N.S.H. & Al-Husainy, N.H.M. (2020). Internal and external determinants of Iraqi bank profitability. Banks and Bank Systems, 15(2), 79-93.
Nanda, S. K., Krishna, S. H., Ram, S. T., Jena, S. K., Hasan, M. F., & Durga, S. (2024, March). Smart Finance: Evaluating AI and Machine Learning's Impact on Investment Strategies and Financial Management. In 2024 International Conference on Trends in Quantum Computing and Emerging Business Technologies (pp. 1-5). IEEE.
Obaid, M. Y. (2021). Social Work and Facing Child Poverty in Iraq: A Comparative Study between Governmental Social Work Institutions and Non-Governmental Institutions. International Journal of Early Childhood Special Education, 13(2), 120-128. DOI: 10.9756/INT-JECSE/V13I2.211047.
Rabea’Hadi, M., Hasan, M. F., Flayyih, H. H., & Hussein, M. K. (2023). Green banking: A literature review on profitability and sustainability implications. Ishtar Journal of Economics and Business Studies, 4(2), 1-6.
Rabee Securities. (2024). Iraqi Banking Sector Witnesses Impressive 15.1% Asset Growth. Retrieved September 20, 2024, from https://finance.yahoo.com/news/iraqi-banking-sector-witnesses-impressive-103000309.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAKikqcNJO498MVpVbXMA1M9CBkKQDIuFXG4ocw_QikxTDN1rwXPo7ejSrxbClh7vt6JKdBrSvnLNWLK02vE5ERebpRqX-e2bmhA5CHlZETBuG3XSy908nzQGqNqw4UMpsxEQqKqcQXnXY8i0wR3RIGfIKvvF52bNAxRwGK-4KyeQ.
Salim Abdulrahman, M. (2019). Factors influencing the adoption of mobile banking service among Cihan Bank customers in the Kurdistan Region of Iraq. International Journal of Advanced Science and Technology, 27(1), 289-301.
Statista. (2024). Banking - Iraq. Retrieved September 20, 2024, from https://www.statista.com/outlook/fmo/banking/iraq.
UNICEF. (2018). Assessment of COVID-19 Impact on Poverty and Vulnerability in Iraq. Retrieved September 20, 2024, from https://www.unicef.org/iraq/reports/assessment-covid-19-impact-poverty-and-vulnerability-iraq
Vinoth, S., Vemula, H. L., Haralayya, B., Mamgain, P., Hasan, M. F., & Naved, M. (2022). Application of cloud computing in banking and e-commerce and related security threats. Materials Today: Proceedings, 51, 2172-2175.