Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Iraq

Iraq

In Iraq, the Traditional Commercial Banking market market is expected to witness a significant growth in Net Interest Income.
By 2024, it is projected to reach an impressive amount of US$5.37bn.
Furthermore, this market segment is anticipated to exhibit a compound annual growth rate of -0.22% between 2024 and 2029.
As a result, the Net Interest Income is projected to expand to US$5.31bn by 2029.
In terms of global comparison, China is expected to generate the highest Net Interest Income in the Traditional Commercial Banking market market.
By 2024, China is projected to have a remarkable Net Interest Income of US$1,444.0bn.
Despite recent political instability, the traditional commercial banking sector in Iraq has shown resilience in adapting to the unique challenges of the local market.

Key regions: China, France, Brazil, Singapore, India

Definition:

Commercial banking refers to the financial services sector that provides a range of financial products and services to businesses, including small and large enterprises. Commercial banks offer services such as loans, lines of credit, and other financial products specifically designed for businesses. These services are critical to supporting the growth and development of businesses and the broader economy.
Commercial banks play a key role in the financial landscape by providing businesses with the funding they need to invest in new projects, hire employees, and expand their operations. They also offer a range of risk management services, such as trade financing and hedging solutions, to help businesses manage their financial risks.
The commercial banking market is highly competitive, with large global players as well as regional and local banks competing for business. Banks in this market are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Changes in regulations and the growing trend towards digitalization are also shaping the commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.
Overall, commercial banking provides a vital range of financial services to businesses and is critical to supporting the growth and development of the broader economy.

Structure:

The market data comprises Net Interest Income, the value of Deposits, the value of Loans, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:

The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the retail and commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

Iraq's Traditional Commercial Banking market has been experiencing notable developments and trends in recent years.

Customer preferences: Customers in Iraq are increasingly turning to traditional commercial banks for their financial needs due to a growing preference for secure and regulated financial institutions. The stability and reliability offered by established banks are becoming more appealing to customers, especially in uncertain economic times.

Trends in the market: One significant trend in the Traditional Commercial Banking market in Iraq is the expansion of banking services to rural areas. Banks are focusing on reaching previously underserved populations, driving financial inclusion and increasing access to banking services across the country. Additionally, the adoption of digital banking solutions is on the rise, with banks investing in technology to enhance customer experience and streamline operations.

Local special circumstances: In Iraq, the Traditional Commercial Banking market is influenced by unique geopolitical and security challenges. The country's history of conflict and political instability has had an impact on the banking sector, leading to a focus on risk management and compliance. Moreover, cultural factors play a role in shaping customer preferences, with personalized service and relationship banking being highly valued by Iraqi customers.

Underlying macroeconomic factors: The development of Iraq's Traditional Commercial Banking market is also influenced by macroeconomic factors such as oil prices and government policies. Fluctuations in oil prices, as Iraq heavily relies on oil exports, can impact the overall economy and subsequently the banking sector. Government initiatives to promote economic growth and financial stability also play a crucial role in shaping the market dynamics.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.