Abdel Aziz, TeymourAbbassi, AlaaChehade, NadineLauer, Kate2016-01-272016-01-272015-07https://hdl.handle.net/10986/23686A well-functioning and inclusive financial sector is critical for efficient resource allocation leading to increased productivity, greater investment, higher overall levels of economic growth, and lower inequality. This is particularly critical in Iraq, where years of political instability and violence have impeded the development of a robust private sector. Microfinance services in Iraq are still nascent and far from meeting their full potential. This diagnostic report aims to present the microfinance landscape in Iraq, its legal and regulatory framework, and potential policy improvements to enhance the operating environment. It aims to inform public and private sector stakeholders on the regulations and laws affecting the development and strategic direction of the microfinance sector. The policy recommendations presented are designed to address factors preventing greater growth and outreach, with the goal of promoting inclusive financial sector development in Iraq.en-USCC BY 3.0 IGOLOAN PROCESSING TIMEMONETARY POLICYFINANCIAL SERVICESECONOMIC GROWTHDEPOSITSPAYMENT SERVICEMONEY LAUNDERINGFINANCINGPAYMENT OBLIGATIONSMICRO-ENTERPRISESINTERESTTRADE CREDITSMICRO-LENDINGGOVERNMENT FUNDINGPRIVATE CREDITINSURANCE SERVICESFAIR LENDINGENTREPRENEURSINEQUALITIESREVENUESFORMAL FINANCIAL SECTORMONEY TRANSFERCAPITAL STRUCTURERISK OF LOSSCAPITAL ADEQUACYINFORMATION SHARINGCAPACITY BUILDINGLOANCREDITWORTHINESSLOAN AMOUNTREPAYMENT PERIODBORROWERSPAYMENTSLOAN CONTRACTDEBT BURDENMFISFUNDING SOURCESECONOMIC ACTIVITYEQUITY REQUIREMENTSLOAN DOCUMENTATIONINDEBTEDNESSFINANCIAL INSTITUTIONCOMMERCIAL BANKBANK ASSETSCURRENT ACCOUNTOPERATIONAL COSTSFOREIGN CURRENCIESFINANCIAL INSTITUTIONSPAYMENTDEBTTRANSPARENT MARKETENTERPRISESBANK CREDITRESERVE REQUIREMENTDONOR SUPPORTLOAN TERMSBANKSLOAN DELINQUENCYFORMAL FINANCIAL INSTITUTIONMOVABLE COLLATERALCAPITALGOVERNMENT INTERVENTIONSOVERDRAFTACCESS TO FINANCECONVENTIONAL BANKBANKMAXIMUM LOAN AMOUNTFOREIGN INVESTMENTHOUSEHOLDCREDIT INFORMATIONFINANCIAL SERVICE PROVIDERSLOAN PORTFOLIOINFORMAL LENDERFINANCE COMPANYSECURITIESMICROCREDITCREDIT RISKPROFITABILITYCONVENTIONAL FINANCIAL INSTITUTIONSMICROFINANCEECONOMIC DEVELOPMENTLOAN RECOVERYBANK LOANFINANCIAL SERVICES PROVIDERSECONOMIES OF SCALESOURCES OF FUNDSCOMMERCIAL BANKSHOUSEHOLDSLOAN SIZECAPITAL REQUIREMENTEMPLOYEEFINANCIAL REGULATORLOAN AMOUNTSLOAN PROCESSINGTERMS OF LOANFEESCOOPERATIVECREDIT LINESFINANCIAL SECTOR DEVELOPMENTCASH FLOWCREDIT REGISTRYINCOME -GENERATING PROJECTEMPLOYEESMFIMICROFINANCE INSTITUTIONDEPOSITPEOPLEINCOME- GENERATING PROJECTINFORMATION SYSTEMDEVELOPMENT CENTERGUARANTEESFINANCE COMPANIESLOAN PROVISIONINGINTEREST RATESTOCK MARKETBANKING SYSTEMINCOME GROUPFINANCIAL RESOURCESSOURCES OF CREDITSOCIAL RESPONSIBILITYGUARANTORSWELFAREINSURANCE POLICIESINCOME TAXSAVINGCURRENT ACCOUNTSFOREIGN INVESTMENTSLENDERMICROFINANCE INSTITUTIONSPUBLIC CREDITACCESS TO FINANCIAL SERVICESANTI-MONEY LAUNDERINGBUSINESS LOANSCREDITSSAVINGSSOURCE OF CREDITACCESS TO FINANCINGCREDIT BUREAUSPUBLIC FUNDSUSURYTAX EXEMPTIONSFINANCIAL COSTSCREDIT SCORESINTEREST RATESPRIVATE INVESTMENTCAPITAL REQUIREMENTSLENDERSPOSTAL SAVINGACCOUNTS RECEIVABLEBANKERSLOANSFINANCIAL SYSTEMINSURANCE POLICYREAL ESTATEFINANCEFOREIGN CURRENCYFREE LOANSUNEMPLOYMENTCOLLATERAL REQUIREMENTSEQUITYGRANTINCOME-GENERATING PROJECTSOPERATING COSTSSMALL ENTERPRISESCREDIT PROVIDERSDONOR RESOURCESFAMILYCREDITFORMAL FINANCIAL SERVICESLOAN PROGRAMWORKING CAPITALDOCUMENTATION REQUIREMENTSREPAYMENTREPAYMENT RATESENTERPRISEPROPERTIESCUSTOMER RELATIONSHIPCREDIT REPORTINGLEGAL REQUIREMENTBALANCE SHEETFINANCIAL SERVICECREDIT BUREAUCREDIT REPORTCREDIT INFORMATION SYSTEMACCESS TO CREDITLOW-INCOME CONSUMERSMICRO- ENTERPRISESINTERESTSPROVIDERS OF CREDITSECURITYBANK LOANSCONVENTIONAL BANKSINVESTMENTLOAN PORTFOLIOSBALANCE SHEETSCOLLATERALBORROWINGSREVENUECOMMERCIAL LENDINGBORROWINGINVESTMENTSLOAN CONTRACTSRISK MANAGEMENTHOUSEHOLD WELFAREUNFAIR COMPETITIONEXCHANGE RATEWOMENOUTREACHDONOR FUNDINGINFORMATION GAPWHOLESALE FUNDINGMONEY TRANSFERSSMALL BUSINESSESGUARANTEECONSUMER PROTECTIONFEMALE BORROWERSINEQUALITYWorking PaperWorld Bank10.1596/23686