THE IMPACT OF BANK OWNERSHIP AND SIZE ON OPERATIONAL RISK MANGMET (BIA) AN APPLIED STUDY IN SAMPLE OF IRAQI AND JORDANIAN BANKS FOR THE PERIOD (2004-2021)
A THESIS SUBMITTED TO BOARD of the College of Administration and Economics – University of Karbala
It is part of the requirements for obtaining a master’s degree in banking and financial sciences
From the student
Noura Ahmed Hamidi
Supervised by
Prof. Dr. Haider Younis Al-Moussawi
Abstract
Financial institutions, especially banks, deal with multiple and diverse risks, and the most important of these risks are operational risks, which include the risks of high costs, their inability to achieve expected profits, the occurrence of errors in financial reports, and internal mismanagement. The management of these risks is affected by several factors, the most important of which is the size and ownership of the bank. Therefore, this study aimed to demonstrate the impact of the size and ownership of the bank on the management of operational risks (BIA). It was based on applying the study to two Iraqi banks (the Commercial Bank and the Sumer Bank), which are listed on the Iraqi Stock Exchange and as a bank. And the Jordanian Housing Bank and Arab Bank) listed on the Amman Stock Exchange, relying on their financial data published in these two aforementioned markets for the period from (2004-2021). The study also reached results, the most important of which was that there is no significant correlation between the ownership and size of Iraqi banks and risk management. The study presented several recommendations, the most important of which was for the management council to develop a model to measure operational risks, using measurement tools that are commensurate with the size and nature of the bank’s operations and its returns.
Keywords: bank size, bank ownership, operational risk management
