Evaluating the financial soundness of banks: – An applied comparative study                    

A sample of commercial banks for the Iraq Stock Exchange for the period of time (2005-2019).

Thesis Introduction to

The Board of the College of Administration and Economics, University of Karbala, as part of the requirements for obtaining a master’s degree in Business Administration Sciences

By The student

Athraa Shaheed Kadhim Al-Khalidi

Supervisor By

Assistant professor Doctor : Ali Ahmed Fares Al- Kaabi

Abstract

The current study seeks to shed light on the cognitive and philosophical aspects of the financial soundness of banks at the level of commercial banks in the Iraqi stock market in light of intense competition and the increase in risks, determinants and financial restrictions and the extent of their evaluation through their indicators, as the subject of financial soundness  is of fundamental importance with the presence of banking soundness  influences and all that they carry Of the forces and trends, as the banking environment surrounded many challenges and many financial problems and shocks emerged, which made financial and international efforts focus on how to maintain and evaluate financial soundness in banks using multiple models with the development of technologies, and the most important technical models (CAMELS Rating system).

From this point of view and to achieve the goal of the study, the banks listed in the Iraq Stock Exchange were adopted as a whole for the study because of their characteristics and features that distinguish them from other business companies. A period of time that spanned (15) years from( 2005-2019). The study methodology relies on the analytical method as it is more appropriate to the nature, scope and objectives of the study.

 The study reached a set of conclusions, the most important of which is the results of the analysis of the percentage of liquid assets that showed that a sample of the studied banks exceeded the minimum level of liquidity in varying proportions, and this discrepancy is due to the bank’s policy in managing capital. High follow a conservative policy. The statistical results also showed that there is a discrepancy between banks in the level of performance indicators and for all indicators.

As for the most prominent recommendations, they are summarized in view of the importance of financial soundness in the banking  environment and its essential role in predicting financial shocks Bank interest.

 Keywords: financial soundness, CAMELS model, profitability indicators