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Digital Banking System Reduces Risk for Iraqi Banks

A recent study has found that the digital banking system can significantly reduce the risk faced by banks in Iraq.

Study Highlights

  • The adoption of digital payment methods has led to a significant decrease in credit risks, reducing non-performing loans (NPLs) by as much as 30%.
  • The use of digital payment systems has not only reduced credit risks but also improved the overall efficiency and profitability of the banks.
  • Customers are able to access their accounts and make transactions more easily and quickly than before, leading to an increase in customer satisfaction and loyalty.

Study Methodology

The researchers used a combination of quantitative and qualitative methods to analyze the data, including statistical analysis and expert interviews. They analyzed the financial data of several major banks in Iraq and found that the adoption of digital payment systems has led to a significant decrease in credit risks.

Implications for Bank Management and Policymakers

  • Banks should prioritize the adoption of digital payment systems as a way to reduce credit risks and improve overall performance.
  • The study’s findings suggest that digital banking can be a game-changer for Iraqi banks, reducing risk, improving efficiency, and increasing profitability.

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