Measuring the Administrative Capacity of Banks and Their Impact on Lending Behavior across the Determinants of Size, Growth and Employment

 An analytical study of a sample of Iraqi banks listed in the Iraq Stock Exchange for the period (2006-2020)

 Message submitted to

 Council of the College of Administration and Economics / University of Karbala

 As part of the requirements for obtaining a master’s degree in Banking and Finance

Submitted by the student

Zahraa Nizar Abdel Wahab

 Supervised by

 Prof. Ali Ahmed Fares 

The study aims to measure and analyze the administrative capacity of banks and determine the extent of its impact on the direction of lending behavior towards diversity in granting loans to different economic sectors in light of a number of determinants closely related to each bank, the most important of which are (size, growth and employment) for a deliberate sample of commercial banks listed in the Iraqi market  Securities for the period (2006-2020).  Achieving balance and heading towards diversification in loans granted by banks may be due to the full levels of administrative capacity that these banks possess to achieve operational effectiveness and efficiency and to benefit from the positive role of the characteristics of size, growth and employment.  Therefore, the managerial capacity of the banks was measured through the Data Envelope Analysis (DEA) method, while the lending behavior was measured through the Hechmann-Herfindal (HHI) method, and the size was measured in the natural logarithm of total assets, while growth was measured through the annual percentage change in asset values, while  Employment was measured using the natural logarithm of the total number of employees.  The overall effect (direct and indirect) between the study variables was tested through the statistical program (SmartPLS.v.3).  The study reached a set of results, the most important of which is (there is a positive overall effect of the administrative ability of the study sample banks on the lending behavior through the determinants of size, growth and employment within the study period).  The study concluded with a number of recommendations, the most important of which are (the necessity of banks’ interest in possessing the full levels of their own administrative capacity because of their positive effects on the direction of lending behavior towards diversity and benefiting from the main characteristics varying between banks, the most important of which are (size, growth and employment)).Keywords: Administrative Capacity, Lending Behavior, Concentration, Diversity, Size, Growth, Employment.

Measuring the Administrative Capacity of Banks and Their Impact on Lending Behavior across the Determinants of Size, Growth and Employment

 An analytical study of a sample of Iraqi banks listed in the Iraq Stock Exchange for the period (2006-2020)

 Message submitted to

 Council of the College of Administration and Economics / University of Karbala

 As part of the requirements for obtaining a master’s degree in Banking and Finance

Submitted by the student

Zahraa Nizar Abdel Wahab

 Supervised by

 Prof. Ali Ahmed Fares 

The study aims to measure and analyze the administrative capacity of banks and determine the extent of its impact on the direction of lending behavior towards diversity in granting loans to different economic sectors in light of a number of determinants closely related to each bank, the most important of which are (size, growth and employment) for a deliberate sample of commercial banks listed in the Iraqi market  Securities for the period (2006-2020).  Achieving balance and heading towards diversification in loans granted by banks may be due to the full levels of administrative capacity that these banks possess to achieve operational effectiveness and efficiency and to benefit from the positive role of the characteristics of size, growth and employment.  Therefore, the managerial capacity of the banks was measured through the Data Envelope Analysis (DEA) method, while the lending behavior was measured through the Hechmann-Herfindal (HHI) method, and the size was measured in the natural logarithm of total assets, while growth was measured through the annual percentage change in asset values, while  Employment was measured using the natural logarithm of the total number of employees.  The overall effect (direct and indirect) between the study variables was tested through the statistical program (SmartPLS.v.3).  The study reached a set of results, the most important of which is (there is a positive overall effect of the administrative ability of the study sample banks on the lending behavior through the determinants of size, growth and employment within the study period).  The study concluded with a number of recommendations, the most important of which are (the necessity of banks’ interest in possessing the full levels of their own administrative capacity because of their positive effects on the direction of lending behavior towards diversity and benefiting from the main characteristics varying between banks, the most important of which are (size, growth and employment)).Keywords: Administrative Capacity, Lending Behavior, Concentration, Diversity, Size, Growth, Employment.