The Effect of the Banking Financial Structure in Liquidity Risk
A practical study in the sample of banks listed on the Iraq Stock Exchange
A Thesis Submitted
To the Council of Administration and Economic College – University of Karbala
In partial Fulfillment of the requirements for the degree Master of Science in
Business Administration
By
Ahmed Hussein Ahmed Al-mussawi
Supervised by
Assistant Professor Doctor
Saadi Ahmed Hameed Al-mussawi

Abstract
The study addresses a very important topic in the contemporary
financial thought. It is The effect of the banking financial structure in liquidity
risk. As the study aims at measuring and analyzing the indicators of the
banking financial structure. Moreover, it also measures and analyzes liquidity
ratios for a sample of banks listed on the Iraq Stock Exchange To know where
the liquidity risk is. Additionally, the study aims at demonstrating the correlation
between The study variables as well as demonstrating the impact degree of the
formulating of the banking financial structure in the bank liquidity. The main
problem of the study emanates from the following questions:
– Is the funding mix in the Iraqi commercial banks (the study sample) an
optimal mix and does it help to reach the best level of liquidity?
– Dose the formulation of the banking financial structure influence the efficiency
of liquidity management at its levels?
The study sample was selected from the Iraqi commercial banks
listed on the Iraq Stock Exchange; which is represented by ten Iraqi commercial
banks that have been studied for a period of ten years from 2005-2014. Three
indicators have been used for measuring the banking financial structure
(Independent variable). The indicators are: Ratio of debt to liabilities, Ratio of
deposits to liabilities and Ratio of deposits to right of ownership. Three
indicators have been used for measuring the Bank Liquidity (Dependent
variable). The indicators are: Cash balance ratio, Legal liquidity ratio and
Investment ratio. A number of statistical methods has been used to measure
the relationships between the variables. These methods are: Arithmetic
average, Simple correlation coefficient (r), Test t, Simple regression coefficient
(b), Test F and The coefficient of determination (R2).
However the most important findings of the study is a statistical
correlation and a statistical impact relationship of significant differences between
the banking financial structure and indicators of bank liquidity. The above
supports the validity of the hypotheses being adopted by the study