Analysis of the relationship between banking risk management and banking financial performance
(An Analytical Study of a Sample of Banks Listed in the Iraqi Sttock Exchange)
A thesis submitted for
Council of Administration and Economics College – University of Karbala In partial Fulfillment of the requirements for the degree Master of Science Banking and Finance
By
Russell Salh Khafaji
Supervisor by
Ass. Prof. Dr. Ali Ahmed Fares
Abstract
The banking risks have grown and changed in light of the developments in financial liberalization, banking developments and the growing use of new financial instruments which helped to create technological progress in banking industries. The interest in banking risk management and development was one of the most important ways to maximize bank returns and avoid financial crises. Adopting profitability measures with risk As for the problem of the study, the question was how to analyze the relationship between the management of banking risk and the financial performance of banking. Mechanism which included banking risk indicators and financial performance were selected sample of 10 bank for the duration of the extended period of 2015-2004, a study applied and was the most important conclusions:
There are only three indicators of all bank risk indicators that have been strongly expressed in the three financial performance indicators of the sample banks, namely one indicator of liquidity risk and capital risk indices, while one indicator of credit risk as an explanatory power in ROA and ROE The ratio of loans to total deposits and the ratio of loans to total loans, which shows the possibility of using deposits in an optimal manner to reduce the various risks to which the bank is exposed. Through a comprehensive risk management of the bank benefit from the diversity of data, internal and external information of the bank and build a unified vision on how to determine these percentages in a way limiting the exposure of the bank to potential