Assess the profitability of banks with liquidity indicators – A comparative study between Rafidain and Rasheed banks
THE IRAQI MAGAZINJE FOR MANAGERIAL SCIENCES
2009, Volume 6, Issue 24, Pages 242-264
Abstract
is the subject of liquidity and profitability of the topics for which she received is still considerable interest by researchers and writers to find the nature of the relationship and how to balance between them beyond primary goal for each bank as well as the goal of safety for a triangle of poles of the three that can not be any bank that ConceptDraw pole or any of it.
The main idea of research evaluating the profitability of the bank to banks Iraqi character of government are the Rafidain and Rasheed using indicators of liquidity and of b (the proportion of the cash balance, the proportion of legal reserves, liquidity ratio legal, employment rate) and indicators of profitability for the statement affected by rates of liquidity, which is (rate of return on deposits, the rate of return on the right of ownership, rate of return on funds available) and to accommodate the research variables were the formulation of research problem, which refers to the bank’s ability to maximize the profit from the results of his work without leading to excessive liquidity, Banking, which has thus reflect negatively on the reputation of the bank and trust dealing with him in the face of their financial obligations and the attic the search on the number of objectives the most important of (assessment of profitability banking and liquidity using the indicators of their statement of the impact of liquidity in the proportions of profit accruing to the bank) and achievement of these objectives has been formulated and tested hypotheses through the use of index statistical ANOVA, which includes the F-test and T and the coefficient of determination was R2 and temporal boundaries to search for a period of years 1997-2001.
and that the most important thing was his conclusion is (the proportion of the impact indicators of liquidity for both banks were weak and not significant in the most likely indicators of profitability banking except one indicator is the legal reserve (liquidity) of the Rafidain Bank, the two indicators are the rate of return on deposits and the rate of return on the right property (profitability), as the effect was strong and morally).
and that the most important recommended by the researcher is (the need to diversify the portfolio of investment banking for both banks in order to decrease the proportion of employment in them despite the rise in the Rasheed Bank compared Balravedan and out of character of the traditional banking business which contributes to enhance profitability of the bank and customer confidence with him).
