Measuring and evaluating credit capacity and its impact on the financial performance of commercial banks
A study on a sample of commercial banks in the Iraq Stock Exchange
Duration (2005-2018)
BY
Zahraa Khayoun Ashour Al-Jubouri
Supervision
Assistant professor Dr. Ali Ahmed Fares

Abstract
The study aims to measure and evaluate the credit capacity with its indicators (total loans to total deposits, total loans to total assets, capital adequacy ratio, loan loss provision ratio) in financial performance through profitability as the most important measure of financial performance. In its study on the practical side, it relied on a set of published financial reports and statements for a group of banks listed on the Iraq Stock Exchange that were selected depending on the extent to which data were provided for the period of the study 2005-2018 and the study sample included (10) banks, namely (Gulf Commercial Business, Babel, Sumer Commercial, Iraqi Credit, Mosul Bank, National bank of Iraqi, Investment bank of Iraqi , United bank for Investment, Baghdad, Iraqi Middle East). The study used a set of financial and statistical means to achieve its goals. The study used simple linear regression between the study variables by using the ready-to-use statistical program SPSSv.25 application.
The study reached a set of conclusions, the most important of which is that there is a big difference in the application of the credit policies of banks, the sample of the study, in support of a general perception of the absence of clear monetary policies in the Iraqi banking sector and the existence of great efforts by banks in achieving their goals and completing their banking operations. Then the study concluded with a set of recommendations, the most important of which is the need to rely on clear credit policies that are inspired by the general monetary policy of the Central Bank by reviewing and following up on the directives of the Central Bank for determining interest rates and reserves and developing future plans based on their fundamentals on the development of the banking sector and the economy in genera
Key words: credit capacity, financial performance.