THE IMPACT OF BANK OWNERSHIP AND SIZE ON OPERATIONAL RISK MANGMET (BIA) AN APPLIED STUDY IN SAMPLE OF IRAQI AND JORDANIAN BANKS FOR THE PERIOD (2004-2021)

A THESIS SUBMITTED TO BOARD of the College of Administration and Economics – University of Karbala

It is part of the requirements for obtaining a master’s degree in banking and financial sciences

From the student

Noura Ahmed Hamidi

Supervised by

Prof. Dr. Haider Younis Al-Moussawi

Abstract

Financial institutions, especially banks, deal with multiple and diverse risks, and the most ‎important of these risks are operational risks, which include the risks of high costs, their ‎inability to achieve expected profits, the occurrence of errors in financial reports, and ‎internal mismanagement.  The management of these risks is affected by several factors, ‎the most important of which is the size and ownership of the bank. Therefore, this study ‎aimed to demonstrate the impact of the size and ownership of the bank on the ‎management of operational risks (BIA). It was based on applying the study to two Iraqi ‎banks (the Commercial Bank and the Sumer Bank), which are listed on the Iraqi Stock ‎Exchange and as a bank.  And the Jordanian Housing Bank and Arab Bank) listed on the ‎Amman Stock Exchange, relying on their financial data published in these two ‎aforementioned markets for the period from (2004-2021). The study also reached results, ‎the most important of which was that there is no significant correlation between the ‎ownership and size of Iraqi banks and risk management.  The study presented several ‎recommendations, the most important of which was for the management council to ‎develop a model to measure operational risks, using measurement tools that are ‎commensurate with the size and nature of the bank’s operations and its returns‏.‏

‏ ‏Keywords: bank size, bank ownership, operational risk management