An applied study on Iraqi Private banks sample that listed on Iraq Stock Exchangefor the period (2014-2020)

Submitted by

Noor Abbas Hussein Al-Bayati

Submitted research

To the Council of the Faculty of Administration and Economics at the Kerbala of University

As a part of the requirements to obtaining a higher diploma degree in bank management

supervision of

Assistant Prof. Dr. Mohammed Faez Hasan Al-Zawba’ai

Abstract

The phenomenon of financial failure is one of the most important phenomena that requires standing in front of it and researching the causes of its occurrence, because its results are reflected on the internal and external parties that benefit from financial reports and the increase in the cases of (hardship and bankruptcy) facing banks, as all the reasons that led to financial failure increased. Paying attention to it by developing models and analytical methods that help in early detection and prediction of this phenomenon, which has begun to worsen in recent years. And because of its serious impact on the goal of survival and continuity of banks, as financial failure is the last stage of financial deterioration.

In addition to the fact that the banking sector is one of the important economic sectors, which plays a major role in achieving progress and feeding the various sectors contributing to any economy, it has become necessary to predict the risks and financial failure that most banks may face. This study dealt with predicting the financial failure of a sample of Iraqi banks listed in the Iraqi Stock Exchange, in order to determine the extent of the ability of these banks to face any risks or difficulties they may face as a result of fluctuations in the Iraqi economy.

To achieve this goal, a logistic regression model was applied to a sample of Iraqi banks listed in the Iraq Stock Exchange, in order to show the ability of Iraqi banks to predict financial failure before it occurs. Iraqi, which included 10 successful banks, and 9 troubled banks.

The research found that Iraqi banks operate in a very dangerous environment in terms of the external and internal conditions surrounding them and are difficult to predict, so appropriate non-traditional models must be provided that enable them to predict financial failure before actually declaring default, and that the rise in property rights, the availability of liquidity and the quality of banking assets have a role Effective, clear and direct in reducing the possibility of financial failure. Among the most important recommendations was the need to provide models to predict financial failure in Iraqi banks and the need to maintain liquidity levels within a reasonable ratio and maintain property rights within approved recommendations and instructions, in addition to the need to pay attention to the quality of banking assets and manage them effectively at a controlled risk level.

An applied study on Iraqi Private banks sample that listed on Iraq Stock Exchangefor the period (2014-2020)

Submitted by

Noor Abbas Hussein Al-Bayati

Submitted research

To the Council of the Faculty of Administration and Economics at the Kerbala of University

As a part of the requirements to obtaining a higher diploma degree in bank management

supervision of

Assistant Prof. Dr. Mohammed Faez Hasan Al-Zawba’ai

Abstract

The phenomenon of financial failure is one of the most important phenomena that requires standing in front of it and researching the causes of its occurrence, because its results are reflected on the internal and external parties that benefit from financial reports and the increase in the cases of (hardship and bankruptcy) facing banks, as all the reasons that led to financial failure increased. Paying attention to it by developing models and analytical methods that help in early detection and prediction of this phenomenon, which has begun to worsen in recent years. And because of its serious impact on the goal of survival and continuity of banks, as financial failure is the last stage of financial deterioration.

In addition to the fact that the banking sector is one of the important economic sectors, which plays a major role in achieving progress and feeding the various sectors contributing to any economy, it has become necessary to predict the risks and financial failure that most banks may face. This study dealt with predicting the financial failure of a sample of Iraqi banks listed in the Iraqi Stock Exchange, in order to determine the extent of the ability of these banks to face any risks or difficulties they may face as a result of fluctuations in the Iraqi economy.

To achieve this goal, a logistic regression model was applied to a sample of Iraqi banks listed in the Iraq Stock Exchange, in order to show the ability of Iraqi banks to predict financial failure before it occurs. Iraqi, which included 10 successful banks, and 9 troubled banks.

The research found that Iraqi banks operate in a very dangerous environment in terms of the external and internal conditions surrounding them and are difficult to predict, so appropriate non-traditional models must be provided that enable them to predict financial failure before actually declaring default, and that the rise in property rights, the availability of liquidity and the quality of banking assets have a role Effective, clear and direct in reducing the possibility of financial failure. Among the most important recommendations was the need to provide models to predict financial failure in Iraqi banks and the need to maintain liquidity levels within a reasonable ratio and maintain property rights within approved recommendations and instructions, in addition to the need to pay attention to the quality of banking assets and manage them effectively at a controlled risk level.