The Role of Investment Deposits in Promoting Sustainable Banking Development

Abstract

The study aims to measure the significance of investment deposits in enhancing the dimensions of sustainable banking development (economic, social, and environmental) in Islamic banks. These deposits represent a key instrument for mobilizing financial resources and allocating them to productive investment channels that contribute to stimulating the economic cycle and promoting social justice by providing financing opportunities for small and medium enterprises, in addition to supporting environmentally oriented projects that comply with sustainability standards.

The study was applied to Al-Nahrain Islamic Bank through an examination of financial and statistical data related to the volume of investment deposits and their sectoral distribution during the period (2021–2024). It also relied on interviews with a group of administrators and specialists in the bank, as well as an analysis of the policies adopted in managing investment deposits and the mechanisms of their allocation. The descriptive and analytical approach was employed to assess the impact of these deposits in promoting economic growth and supporting social, service, and environmental initiatives, combining both theoretical analysis of investment deposits and sustainable development and the empirical analysis of the bank’s financial data.The findings of the study revealed that investment deposits positively contribute to enhancing sustainable development, with a 51.8% impact on sustainability indicators according to the regression analysis. The results also showed a clear influence on the economic and environmental dimensions, while the impact on the social dimension was relatively limited. Additionally, the study identified a gradual shift in the bank’s strategies toward strengthening environmental and social investments without compromising economic returns.