Financial flexibility and its impact on banking stability: The moderator role of early warning indicators
Analytical study in a sample of banks registered in the Iraqi Stock Exchange For the periodz (2012-2021)
A thesis submitted
To The Board Of The College Of Administration And Economics, University of Karbala –which is part of the requirements for obtaining the degree of philosophy in of Business Administration Sciences
BY
Hussein Ali Abdul Hur Al-Ardi
SUPERVISED BY
Prof.Dr.Abdul Hussein Jassim Al-Asadi Prof.Dr.Sahar Abbas Hussein
Abstract: The study sought to determine the effect between financial flexibility, which was measured by ratios (net cash flow, leverage, liquidity), on banking stability, measured by the Z-score index) by exploring the Moderator effect of early warning indicators, which were measured by ratios (non-performing loans to total cash credit). Non-performing loans to total loans, non-performing loans to total assets (through a set of questions that inquire about the nature of the effect between the variables in the banks in the study sample, through which the study hypotheses were formulated to determine the effect. The study relied, in the applied aspect, on data from the banks in the study sample) The National Bank of Iraq, the United Investment Bank, the Investment Bank, the Credit Bank of Iraq, the Commercial Bank of Iraq, Al Khaleej Commercial Bank, the Middle East Bank, the Mosul Bank for Development and Investment, the Bank of Baghdad, and the Sumer Bank), which are listed on the Iraq Stock Exchange, as the time series extended for (10) years (2012-2021), and to determine the nature of the effect between the variables of the study, the study relied on (Analysis Data Panel) using the program Eviews12 and the Smart pls4 program to analyze the data, in addition to using the program ((Excel). The study reached a set of conclusions, the most important of which is the existence of an effect of flexibility In banking stability, the Moderator variable has an inverse effect on the relationship between financial flexibility and banking stability. The study’s recommendations came in the need for banks to take into account the statistical results reached by the study by reducing non-performing loans to achieve banking stability.
Keywords: financial flexibility, early warning indicators, banking stability, commercial banks.
