Purpose: The current study aims at examining the reality of bank credit, analyzing, and estimating investment and public spending in Iraq. The research also aims at showing the impact of bank credit on investment and public spending in Iraq.
Theoretical framework: Bank credit has an instrumental and effective part in financing most economic activities, which contributes to revitalizing the national economy by organizing and developing short, medium and long-term financing mechanisms. As for investment and public spending, they reflect the development of the economy and the extent of financial and monetary stability that the country has.
Methodology: For reaching the research methodology, the inductive approach was adopted to study the total facts through formulating economic analysis descriptively by using modern standard tools in economic analysis to show the impact of bank credit on investment and public spending.
Finding: It was concluded that bank credit has a key role, especially in financing investment projects that require great funds in order to create a favorable climate for investment. The relationship between bank credit and investment is a direct relationship.
Research, scientific and social implications: The study identifies investment financing and public spending and how bank credit can meet this financing through the bank strategies. The study also determines which of the two variables, investment and public spending, is most affected by bank credit.