Publication Details
Abstract
This paper aims to explore how Financial Technology can affect monetary policy and banking performance for the period of (from 2010-2024) as the Iraqi banking sector has adopted digital financial applications. The findings indicate that Fintech will positively impact effectiveness of Monetary Policy Instruments and Banking Performance in Iraq. The study employs an analytical-descriptive methodology supported by an econometric approach to measure the relationship between financial technology indicators (such as the volume of electronic payments, the number of digital transactions, and the spread of electronic wallets) and monetary policy variables (inflation, interest rate, money supply) and banking efficiency indicators (cost-to-income ratio, return on assets, and transaction processing speed). According to the findings, the growth in financial technology use has aided in increasing the effectiveness of liquidity management and hastening the transfer of monetary policy effects to economic variables. Additionally, it improved the caliber of banking services while lowering operating expenses. The report also reveals that the full potential of these technologies is still constrained by inadequate digital infrastructure, lax laws, and insufficient financial literacy among a sizable portion of the consumer base. To support monetary policy objectives and attain improved banking performance efficiency, the report suggests creating laws pertaining to financial technology and fortifying alliances between banks and Financial technology firms.