Search Results for credit-risk
Abstract
The research focuses on calculating the expected credit risks according to the IFRS9 9 standard and how to apply this standard in the National Bank of Iraq. IFRS9 9 is an accounting standard that deals with the classification, financial value of financial assets and the management of risks related to them. Modern accounting standards require considering the financial risks of loans and other financial products owned by the bank. The IFRS9 9 standard aims to supply a comprehensive credit risk management system and supply a probable estimate of expected losses on loans and other financial products. The process of calculating the expected credit risk by the IFRS9 9 standard includes several main steps. First, financial products should be classified according to the degree of expected risk. This classification is based on the quantitative and qualitative information relevant to the bank and the credit risk assessment for each category. After that, the expected credit size for each category is decided based on forecasting models and risk estimates. These models are based on a set of accounting, economic and business standards. Historical data and current information are used to decide the expected credit volume and the possible risks entailed by financial portfolios. According to accounting standards, banks must include the expected credit volume in periodic financial reports and constantly update it. This helps third parties, such as investors and regulators, to understand the bank's exposure to credit risks and the efficiency of the bank's risk management. This process is reflected in the volume of credit applied at the National Bank of Iraq by improving the bank's understanding of credit risks and thus the ability to make better decisions in granting loans and managing risks. The aim of this research is to study the calculation of expected credit risks following the IFRS9 9 standard and analyze their impact on the credit volume in its application at the National Bank of Iraq. The focus is on understanding the details of the standard and how to apply it to improve risk management and make better decisions in granting loans. Through this research, we have concluded that calculating the expected credit risks by IFRS9 contributes to enhancing the bank's understanding of credit risks and improving its efficiency in risk management, and the correct application of the standard helps in supplying more transparent and predictable financial reporting of potential losses. Based on the findings, there are some recommendations for improving risk management at the National Bank of Iraq and applying the IFRS9 standard. The bank should strengthen its technical capabilities to collect and analyze financial data and credit ratings in a more correct and effective manner, and the bank should supply continuous training to employees on the standard and methods of its implementation and the use of proper predictive models to calculate the expected credit risks. Finally, the bank should give financial reports in an organized and transparent manner, explaining the expected credit volume and the potential risks entailed by this volume. This will help investors and regulators understand the extent of the bank's exposure to credit risks and the efficiency of the bank's risk management.
Abstract
The research aims to shed light on the effect of credit risk on the share prices that economic units are exposed to, represented by commercial banks, the sample of the research, as a result of the credit facilities they grant, which are represented in loans and advances, and since these units earn profits through credit facilities, they bear some risks due to some default In terms of payment, where the risks relate to the return directly, as the higher the return, the greater the risk. As for the research sample, it was represented by commercial banks, which amounted to five banks listed on the Iraq Stock Exchange for the period from (2015-2019). Financial indicators were used to measure these risks as well as the use of the SPSS program. To analyze the data and test hypotheses, a set of conclusions and recommendations were reached that support the research, and the results showed a statistically significant effect of non-performing loans on stock prices. The research also found a statistically significant effect of the provision for credit losses on stock prices. Bad loans for some banks reached a dangerous stage, reaching (1.09) for the Assyrian Bank for the year (2017) and the Bank of Baghdad (0.82) for General (2018).
Abstract
Abstract
Commercial banks are the basic infrastructure in building the economy and business of any country, as commercial banks play a prominent role in the process of economic development, and most banks are exposed to many banking risks that may lead to instability in the financial system. Perhaps the most important of these risks is liquidity and credit risk, which are one of the important issues in commercial banks, as it is a source of concern for every bank, because the function for which the banks were found is to provide cash liquidity and grant credit. This research aims to clarify and analyze the relationship of (liquidity and credit) risks with banking safety indicators for a sample of commercial banks. Three commercial banks (the Commercial Bank of Iraq, the United Bank for Investment, and the Middle East Bank) were selected for the period (2010-2020) and the research was based on the following hypothesis It (there is a statistically significant correlation between credit and liquidity risks and banking safety indicators), and the research reached several results, the most important of which is that analyzing the relationship of liquidity and credit risk indicators with banking safety indicators helped policy makers and regulators identify strengths and weaknesses in commercial banks. easily, so that they can take preventive measures to avoid any crises or setbacks that hinder the work of banks. While the research recommended the necessity of urging Iraqi commercial banks to develop measurement and control tools and to develop effective contingency plans, in order to control liquidity and credit risks
Abstract
This research aims to analyze the impact of bank Credit risk as an independent variable on the returns of investors represented by the free cash flow available to the owner of Common stocker as a dependent variable. To achieve this goal, we used a sample of (20) Iraqi Commercial bank for the period from 2014 - 2020. using quantitative risk metrics, the study found correlations and adverse influence between two of dependent variables and positive correlations and effect with the other variables.
Abstract
The process of pricing bank loans is one of the most important sources for the bank’s
revenues, as loans represent a large part of the bank’s assets. The research aims to measure and
know the impact of bank loan pricing indicators on credit risk. When the bank sets a high interest
rate, this leads to a loss of customers by going to other banks to obtain loans, and if a low interest
rate is set, this leads to a loss for the bank. Therefore, banks should use modern methods of
pricing bank loans. The research community represents the banks listed in the market. Iraq Stock
Exchange. As for the research sample, it consisted of 8 banks that were selected from among 24
banks listed on the Iraq Stock Exchange that meet the research requirements, and for the period
(2006-2015), and a set of financial indicators were used (return on net funds used, weighted
average cost of capital, Z-Score Profitability objective) Measurable research variables .
Abstract
This study aimed to demonstrate the impact of financial and operational risks on the profitability of Iraqi Islamic banks as of (2014-2019), where the study population consists of all employees of Iraqi Islamic banks, with a total of (8) banks. The sample of the study consisted of (50) individuals. Eviews software was used for statistical analysis, and the analytical descriptive statistical method was applied in this study. To achieve the study objectives, the following indicators were used to express financial risks: credit risk, interest rate risk, liquidity risk, and capital adequacy risk. The indicators below were used to express: With regard to financial performance (return on assets, return on equity), the difficulty of the research was the significant growth in these risks due to technological progress and the creation of new financial instruments, and the study found that financial risks had a harmful effect On the financial performance of the Iraqi banks. In the light of the previous results. The report concluded with a number of suggestions, the most important of which are: the need for Iraqi banks to implement a specific plan for risk management that improves financial performance, as well as setting up preventive and corrective internal control mechanisms. Credit grants are expanded.
Abstract
The research aims to evaluate the performance of banks using the PATROL model as a modern model that departs from traditional evaluation models. The model used is considered an early warning tool and includes five indicators: “(capital adequacy, profitability, credit risk, regulation, liquidity).” The research methodology included the use of the descriptive aspect based on books, research, dissertations, and theses, in addition to the use of the analytical aspect through the use of mathematical equations for the indicators of the model used. The research sample represented banks (Sumer Commercial, International Islamic) due to the availability of their data announced in the stock market, in addition to not displaying the research sample to any Violations during its banking work and throughout the research period extending between (2017-2022) for the purpose of making a comparison between them when using the model in evaluating their performance and determining the best in performance. The research hypothesis was proven that the PATROL model can be used in evaluating the performance of commercial and Islamic banks. The research reached a number of conclusions. The most important of which is that using the model helps bank management in identifying the strengths and weaknesses of performance, which helps decision makers develop effective solutions to obstacles and problems in a timely manner. One of the most important main recommendations of the research is directing banks to the necessity of following up on the performance evaluation process to achieve their banking soundness and ensure their sustainability and continuity in the job.