IJEFSD
Vol. 8 No. 2 (2026): International Journal on Economics, Finance and Sustainable Development (IJEFSD

Assessing the Impact of Oil Shocks on Banking Liquidity Indicators in Iraq: For the Period 2015-2024

Jinan Salim Hilal (University of Al-Qadisiyah, College of Administration and Economics, Department of Financial and Banking Sciences)



Article Info

Publish Date
20 Jun 2026

Abstract

This research examines how oil shocks, both positive and negative, affected banks liquidity indicators, which drive Iraq's financial activity. Iraqi indices for 2015–2024: liquid asset to total asset, short-term liabilities, and client deposit to total loan ratios. Data is released annually. Modern econometric approaches were utilised to study economic variables and their time series. Stationarity, cointegration (with the boundary approach), VECM, and ARDL statistical models were utilised. Negative oil shocks correlate directly with bank liquidity metrics, the data show. Iraq's economy relies on oil income for over 85% of its revenue, making it sensitive to shocks. The findings show that negative shocks affect the indices more than positive ones. Study results and suggestions are its conclusion.

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Journal Info

Abbrev

IJEFSD

Publisher

Subject

Economics, Econometrics & Finance

Description

International Journal on Economics, Finance and Sustainable Development (IJEFSD) is an international, peer-reviewed, and scholarly journal aimed at being a platform for interdisciplinary researchers across the globe to develop and advance both theory and practice of economics and finance while ...