Oil prices and Some economic Variables and Their Impact on Financial and Banking Performance

An applied study in a sample of commercial banks listed in the Iraq Stock Exchange for the period (2005-2020)

A letter submitted to the Board of the College of Administration and Economics – University of Karbala, which is part of the requirements for obtaining a master’s degree in financial and banking sciences

by the student

Howra Abdel-Latif Abboud

Supervisor

Ass. Pro. Dr. Hamid Mohsn Jadah Al-Masoudi

This study aims to monitor the reality of the financial performance of Iraqi banks and to study the impact of oil prices and some economic variables (inflation, exchange rate and gross domestic product) on the financial performance. Statistical analyzes and tests using SPSSV.22 and EXCEL statistical programs using correlation and regression coefficients.

The study reached a set of results, the most important of which is the existence of a statistically significant correlation between inflation and liquidity only and is estimated at (-0.525), which is an average inverse relationship with a significant level of 0.037. There is no statistically significant correlation between oil prices and financial performance indicators.” We reject the second null hypothesis, which states that “there is no statistically significant relationship between economic variables and financial performance indicators.” We accept the alternative hypothesis, which states that there is a statistically significant correlation between economic variables and financial performance indicators. Financial performance . Also, the results of the statistical analysis showed that there are no statistically significant influence relationships of oil prices on the financial performance indicators, so we accept the third main null hypothesis which states that “there is no statistically significant influence relationship of oil prices on the financial performance indicators. Also, the results of the statistical analysis showed that there are no influence relationships Statistically significant for economic variables in financial performance indicators, so we accept the fourth main null hypothesis, which states, “There is no statistically significant effect of economic variables in financial performance indicators.

The study recommended the need for the government to support the economic sectors for the purpose of increasing the gross domestic product, including increasing the per capita share of net income, which reflects positively on increasing the rate of investment and savings in the banking sector, and then increasing the profitability of banks, and the government must implement the inflation targeting system for the purpose of controlling inflation.

Keywords: financial performance, oil prices, banking sector, economic indicators

Oil prices and Some economic Variables and Their Impact on Financial and Banking Performance

An applied study in a sample of commercial banks listed in the Iraq Stock Exchange for the period (2005-2020)

A letter submitted to the Board of the College of Administration and Economics – University of Karbala, which is part of the requirements for obtaining a master’s degree in financial and banking sciences

by the student

Howra Abdel-Latif Abboud

Supervisor

Ass. Pro. Dr. Hamid Mohsn Jadah Al-Masoudi

This study aims to monitor the reality of the financial performance of Iraqi banks and to study the impact of oil prices and some economic variables (inflation, exchange rate and gross domestic product) on the financial performance. Statistical analyzes and tests using SPSSV.22 and EXCEL statistical programs using correlation and regression coefficients.

The study reached a set of results, the most important of which is the existence of a statistically significant correlation between inflation and liquidity only and is estimated at (-0.525), which is an average inverse relationship with a significant level of 0.037. There is no statistically significant correlation between oil prices and financial performance indicators.” We reject the second null hypothesis, which states that “there is no statistically significant relationship between economic variables and financial performance indicators.” We accept the alternative hypothesis, which states that there is a statistically significant correlation between economic variables and financial performance indicators. Financial performance . Also, the results of the statistical analysis showed that there are no statistically significant influence relationships of oil prices on the financial performance indicators, so we accept the third main null hypothesis which states that “there is no statistically significant influence relationship of oil prices on the financial performance indicators. Also, the results of the statistical analysis showed that there are no influence relationships Statistically significant for economic variables in financial performance indicators, so we accept the fourth main null hypothesis, which states, “There is no statistically significant effect of economic variables in financial performance indicators.

The study recommended the need for the government to support the economic sectors for the purpose of increasing the gross domestic product, including increasing the per capita share of net income, which reflects positively on increasing the rate of investment and savings in the banking sector, and then increasing the profitability of banks, and the government must implement the inflation targeting system for the purpose of controlling inflation.

Keywords: financial performance, oil prices, banking sector, economic indicators