The Impact of Capitalization Strategy on Digital Transformation

An Analytical Study in the Central Bank of Iraq

( For the period ( 2011 – 2022

A thesis

submitted to the Council of the College of Administration and Economics / University of Kerbala

as a partial fulfillment of the requirements for the degree of Master of

financial and banking sciences

By

Mustafa Hashim Hasan

Supervised by

Asst. Prof. Dr. Nagham Dayekh Abid-Ali

Abstract

The study aims to know the banking capitalization strategy, provide a theoretical and philosophical framework based on intellectual qualification, and provide a modest contribution regarding the variables and dimensions of the study.

The study addressed the issue of the banking capitalization strategy with its indicators (retained profits, Issuing shares for the Central Bank of Iraq and reserves) and its impact on digital transformation with its indicators (the electronic clearing system and the gross real-time settlement system).

The study sample was chosen at the Central Bank of Iraq, due to the major role it plays in the country’s economy, and through the financial reports published on the official website of the Central Bank for the period from (2011-2022), and a set of statistical programs were used (SPSSV25, Excel V.10). (Eviews v.12) in order to process data and information. The study also tested a set of main and sub-hypotheses regarding the influence relationships between the variables of the study. In conclusion, the study reached a set of results, the most important of which is the existence of a correlation between the capitalization strategy and the extent of benefiting from it in digital transformation, The emergence of an impact of the banking capitalization strategy and its indicators on digital transformation. The study concluded with a set of recommendations, the most important of which is the need for the Central Bank to use its strategies to serve banks by changing the business model and using modern methods for the purpose of achieving the desired goals.

Keywords: (banking capitalization strategy, digital transformation) .

The Impact of Capitalization Strategy on Digital Transformation

An Analytical Study in the Central Bank of Iraq

( For the period ( 2011 – 2022

A thesis

submitted to the Council of the College of Administration and Economics / University of Kerbala

as a partial fulfillment of the requirements for the degree of Master of

financial and banking sciences

By

Mustafa Hashim Hasan

Supervised by

Asst. Prof. Dr. Nagham Dayekh Abid-Ali

Abstract

The study aims to know the banking capitalization strategy, provide a theoretical and philosophical framework based on intellectual qualification, and provide a modest contribution regarding the variables and dimensions of the study.

The study addressed the issue of the banking capitalization strategy with its indicators (retained profits, Issuing shares for the Central Bank of Iraq and reserves) and its impact on digital transformation with its indicators (the electronic clearing system and the gross real-time settlement system).

The study sample was chosen at the Central Bank of Iraq, due to the major role it plays in the country’s economy, and through the financial reports published on the official website of the Central Bank for the period from (2011-2022), and a set of statistical programs were used (SPSSV25, Excel V.10). (Eviews v.12) in order to process data and information. The study also tested a set of main and sub-hypotheses regarding the influence relationships between the variables of the study. In conclusion, the study reached a set of results, the most important of which is the existence of a correlation between the capitalization strategy and the extent of benefiting from it in digital transformation, The emergence of an impact of the banking capitalization strategy and its indicators on digital transformation. The study concluded with a set of recommendations, the most important of which is the need for the Central Bank to use its strategies to serve banks by changing the business model and using modern methods for the purpose of achieving the desired goals.

Keywords: (banking capitalization strategy, digital transformation) .