Search Results for liquidity

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

The statement of cash flows carries great importance for the users of the financial statements and facilitates the process of understanding and analyzing them because it provides financial information that is free from misleading and is modern as one of the main requirements of the establishments and provides useful information about the establishment’s operational, investment and financing activities. It exposes commercial banks to financial crises and risks. Cash, cash liquidity risks, and it has to draw the responsibilities of the monetary authority and establish an effective central unit through a strategic system and rely on ratios and indicators of cash liquidity because the low level of cash liquidity can expose banks to a financial crisis and financial risks that make them lose the element of safety, profitability and cash liquidity even if they achieve earnings And commercial banks must maintain cash liquidity by preserving cash assets and assets, and the research also found the results of the other bank with very high ratios that outweigh other ratios, such as the cash balance ratio and legal reserve, and the need to pay attention to the surplus and shortage of liquidity that you may be exposed to. Commercial banks during the exercise of their business, and the research also arrived, and the bank has the ability to provide various services and pay the obligations due with its liabilities, as it was found that the higher the rate of employment and loans compared to other banks, it turns out that the bank is able to offer new loans and grant advances and other facilities. Financial statements, including the balance sheet and the statement of cash flows, for the purpose of developing and drawing up plans for the future In order for the bank not to resort to borrowing on commercial banks, a sound policy drawing to avoid exposing the bank to banking and credit risks and cash liquidity risks and formulating an effective and sound strategy for the purpose of managing the securities and loan portfolio.

Abstract

This research aims to analyze and evaluate the liquidity and banking performance indicators of the Bank of Baghdad for the period (2018–2023). Liquidity in Iraqi commercial banks is a crucial economic issue that impacts the financial and banking performance of the country, especially due to economic and political fluctuations that may hinder banks from providing sufficient funding for investment projects. This, in turn, negatively affects growth and production, leading to a decline in the financial performance of commercial banks. The research is based on the hypothesis that liquidity has a significant impact on banking performance. It adopts the deductive approach by combining both descriptive-analytical and quantitative methods. The study includes two variables: one independent and one dependent. The independent variable is the banking liquidity shock, while the dependent variables are banking performance, represented by the return on investment (ROI) and earnings per share (EPS). The researcher concluded that the Bank of Baghdad experienced very high liquidity ratios during the study period, indicating its ability to meet obligations and fulfill customer demands. This suggests that the bank enjoys strong financial performance and a solid credit position. However, profitability rates declined due to the bank’s efforts to balance liquidity and profitability.

Abstract

This study aims to demonstrate liquidity risk and its impact on banking security using the audited annual financial statements of Iraqi commercial banks for the period between 2016-2020AD for five of the Iraqi commercial banks. To test the study hypotheses, the percentages that represent the indicators of liquidity and banking security were extracted, and using the simple regression analysis method, the correlation coefficient, the coefficient of determination and the T-test as tools for analysis through the statistical program Mini tab 18, the results showed a statistically significant relationship between the dependent and independent variable represented by measures Bank liquidity and banking security in the Iraqi commercial banks, the subject of the study, and some conclusions and recommendations were reached for the purpose of overcoming the risks of bank liquidity.

Abstract

Banks are exposed to many financial risks that arise when the bank faces difficulty in recovering loans from borrowers, which may affect the bank's assets and its ability to meet its obligations. There are also market risks related to fluctuations in interest rates, stock prices, and exchange rates, which negatively impact the value of assets. In addition, there are liquidity risks related to the bank's inability to meet liquidity needs suddenly, such as the withdrawal of deposits or financing loans, which creates challenges in achieving a balance between profitability and liquidity. Non-financial risks to which banks are exposed include operational risks resulting from the failure of internal systems or procedures, and legal risks arising from failure to comply with laws and regulations, which may lead to fines or legal cases. There are also strategic risks resulting from making incorrect decisions that affect the bank's future, in addition to reputational risks related to damage to the bank's image as a result of customer complaints or financial crises. To manage these risks, banks implement multiple strategies such as hedging, diversifying investments, and ensuring the implementation of regulatory requirements. Risk management helps improve the bank's stability and enhance its ability to make sound financial decisions, enabling it to reduce losses. Potential, capital preservation, and long-term sustainability are guaranteed, which increases the level of trust between clients and investors.

Abstract

The form of estimating, analyzing and interpreting the mechanism and channels of influence that financial flexibility can have with its sub-indices represented by (Liquidity CU, Financial Leverage (FL), towards the value of the company (MVA) for a sample of companies listed on the Iraq Stock Exchange consisting of six companies and for the period (2012-2022).), the main goal that the research sought to achieve. To achieve this, in addition to proving its hypotheses, the research adopted the sum of pooled averages methodology based on the Autoregressive Distributed Lag and Pooled Mean Group (PMG/ARDL) methodology, based on data. The Balanced Longitudinal Panel Data, with a number of views amounting to (66) views, and its experimental results came to confirm that high levels of financial flexibility, whether through an increase in the liquidity index or through a decrease in the financial leverage index, are usually accompanied by positive effects on the company value index on... Long term due to the positive impact that financial flexibility has on the rise in the total market value of securities listed on the financial market, This calls for companies to pay attention to financial flexibility indicators and adopt them as a guide in their work because of their significant and effective role in controlling their sources of financing, protecting them from the risk of default, and supporting their ability to seize available investment opportunities, as well as confronting and overcoming financial crises by increasing the size of their assets compared to their debts and ensuring the availability of... Liquidity below the acceptable level.

Abstract

The aim of the research is to analyze and measure the effect resulting from the internal factors represented by (cash liquidity, debt ratio, capital adequacy, credit facilities to assets, bank size, quality of banking service) affecting the profitability of Iraqi commercial banks represented by the rate of return on assets (ROA) and the rate of return on assets (ROA) and the rate of return on assets. Return on Equity (ROE), and to achieve the goal of the research, a model was built to measure the impact of independent variables on the dependent variable based on the program ( Amos Statistical Analysis Twenty-Fourth Edition ) starting from the application of the multiple linear regression analysis method on a sample of two banks during the period from (2010 -2019), and the research reached a set of results, the most important of which is (there is a significant and statistically significant effect of the internal factors in the profitability indicators (ROA, ROE), and the research showed that the internal factors that most influence the profitability of commercial banks in the study sample differed from one bank to another. It was recommended to strengthen the interest in the capital adequacy ratio, the indebtedness ratio and cash liquidity because of their significant impact on the profitability of commercial banks, the research sample

Abstract

The research aims to study and analyze the cognitive foundations of analytical procedures and the efficiency of external auditors, in addition to reviewing the relevant literature on the quality of financial reporting. It focuses on the extent to which analytical procedures are applied and on verifying the external auditor’s commitment to their implementation within a selected sample of Iraqi banks (Iraqi National Bank) The study is based on the hypothesis that adopting sound analytical procedures, supported by an audit team that is scientifically and professionally qualified, positively impacts the quality of financial reporting of the audited entity. To achieve the research objectives, the financial statements of the sampled banks were analyzed using financial ratios representing liquidity, activity, leverage, and profitability.

Through a comparison between the ratios used by the external auditors and those applied by the researcher, it was found that the auditors primarily focused on liquidity indicators, applying only the current ratio, without extending the analysis to other ratios related to activity, profitability, and leverage.

The findings revealed that the effective application of analytical procedures by competent external auditors enhances the quality of financial reporting, as each element reinforces the other’s effectiveness; any weakness in one dimension directly affects the reliability of financial reports.

The researcher recommends that analytical procedures and financial ratios be applied by auditors throughout all stages of the audit process, as they provide essential support in determining the nature, timing, and extent of audit tests, while maintaining previous results for comparative and future evaluation purposes..

Abstract

The Iraqi banking sector is working to keep pace with modern banking technologies, and with the aim of exploring the impact of electronic payment methods on the efficiency of banking performance, three standard models were built for the Iraqi banking sector, for the period (January 2018-December 2022) with monthly data, so that the number of time series observations for each model reaches (60) View.

The research found a positive impact of electronic payment methods on the financial performance of the Iraqi banking sector, by raising its level of profitability and reducing its costs, in addition to the important role played by managing its liquidity and reducing its risks. Electronic payment methods also had a negative impact on the efficiency of internal operations management through... Its inability to reduce the effort and speed in completing operations and responding to customer requirements, due to adherence to traditional methods of completing banking work and the limited use of technology for archiving, which has reinforced the episodes of red tape in banking work, and has had negative effects on the quality of banking services.     

Abstract

        The research aims to test the financial equilibrium in the Iraqi commercial banks, by utilizing a sample of (9) commercial banks listed in the Iraqi Stock Exchange, for the period (2004-2019). Four financial indicators have been chosen, to measure the financial equilibrium are (liquidity index, profitability index, index financial flexibility, solvency index), and the descriptive and analytical approach was used for the data and information contained in the reports and statements of the research sample banks. Moreover, (Excel-2010) and (SPSS.V.22), to test the hypothesis and answer the question related to the problem of the study and reaching the goals, and as the research reached a set of results. the main finding of this study do not suffer from a financial imbalance resulting from weakness in its four dimensions. Furthermore, this research recommend that, the banks should evaluates its financial performance on an ongoing basis, using indicators of financial equilibrium for its importance in the strength of The financial position of any company with financial activity.

Abstract

The aim of this research is to try to shed light on the effectiveness of the work of banks when approving mergers between them, to identify the extent to which the banking system benefits from banking mergers, as it is one of the important means of raising the effectiveness of the banks’ performance and increasing their financial capabilities as a step to encourage banks to merge with each other.

Banking merger has repercussions on the performance of the banking sector in improving the level of profitability and banking liquidity.

The research relied on the deductive approach by monitoring and studying some international experiences, (evaluating the experience of the merger of First Gulf Bank with SABB Bank, and financial data were taken two years before the merger and four years after the merger) and (evaluating the experience of the merger of First Gulf Bank and National Abu Dhabi, and financial data were taken. Two years before the merger and four years after the merger) and he also used the quantitative method by using financial indicators to reach the results of evaluating these experiences.

The research reached a set of conclusions, the most important of which is that the merger had positive repercussions on the banking performance of liquidity indicators, while it had a negative impact on profitability indicators. There is a noticeable increase in the customer base and an increase in banking capital

Abstract

The research discussed the importance of non-financial information and the extent of its disclosure and its reflection on the market value of Iraqi commercial banks. The research sample included in the Iraq Stock Exchange, as a list of information required to be disclosed in banks consisting of (67) elements was prepared, and applied to each of the banks as a sample Research to find out whether the bank discloses the information or not, and the information was divided into four groups: a strategy, a non-financial financial, and another to measure the independent variable represented by the non-financial disclosure, while the average annual price of the share was used as a measure to measure the dependent variable represented by the market value of bank shares, which is It is extracted by (the annual trading volume of the bank the number of shares traded), and among the most important conclusions reached by the research are: There is no correlation and moral impact between the non-financial disclosure and the market value. While the research concluded with presenting a set of recommendations, the most important of which are: The need for investors to be aware of the importance of non-financial disclosure as it provides additional information related to risk management such as risks (credit, market, liquidity, interest rates, foreign currency) and future expectations regarding stock prices, cash flows, revenues and profits. And capital expenditures, given that the disclosure of financial information does not provide investors with the future evaluation of the bank and the ability to fully understand the opportunities and risks, which helps them in the process of visualizing future risks and opportunities in addition to evaluating the financial expectations of the bank in the distant future, which enables them to make a rational decision in investing in the bank’s shares.

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 United Arab Emirates has established a distinguished economic and social model characterized by its ability to keep pace with rapid technological and digital transformations, as well as its continuous expansion in investment and development activities. Despite this progress, the UAE remains vulnerable to fluctuations resulting from global economic crises, including the COVID-19 pandemic, which had a substantial impact on financial markets, liquidity levels, and capital mobility.

  This study examines the structural characteristics of the UAE economy and its development policies through key macroeconomic indicators, namely gross domestic product (GDP), the inflation rate, and the public debt ratio. It then analyzes the impact of the COVID-19 crisis on the UAE banking system by focusing on Emirates NBD Bank and First Abu Dhabi Bank, based on selected financial indicators, including net profit, return on assets (ROA), and return on equity (ROE).                                                                                          

              Among the most important conclusions reached by the study is that the COVID-19 crisis revealed the resilience and efficiency of the UAE banking sector in dealing with the pandemic and achieving an early recovery. This resilience contributed to financial stability and superior profitability for both banks. However, the pace and nature of recovery differed between the two institutions. Emirates NBD Bank achieved the highest levels of profitability and return on assets, while First Abu Dhabi Bank maintained steady growth, reflecting the adoption of a long-term risk management strategy. This diversity in banks’ policies contributes to the creation of a balanced banking system capable of effectively coping with crisis.                                                                          

           As for the key recommendations, the study emphasizes the need to strengthen the role of the banking sector in raising public awareness, as well as monitoring the damages suffered by customers in the aftermath of crises, giving due consideration to their interests, and ensuring the protection of their rights through a comprehensive set of regulatory and supportive measures.     

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.

Abstract

This paper examined the channels by which the effect of monetary policy is transmitted to macroeconomics in Iraq using one of the dynamic random general equilibrium models (DSGE, smets and wouters 2007). The study shows a general equilibrium model and analyzes precisely the channels of impact transmission and their effects, via a range of instruments used by the monetary authority through the mechanism of transmission of the effect of Iraqi monetary policy to some macroeconomic variables. This is illustrated by inflation targeting through the nominal fixed (exchange rate) through the foreign currency sale window , and the reason for using the exchange rate as a nominal constant is due to the financial shallowness suffered by the Iraqi economy and the separation of monetary behavior from the real behavior in the economy, as well as the absence of focus on a direction to the potential output (the level of natural unemployment rate), which led to the weakness of the impact of the Iraqi central tools in macroeconomic variables without monetary variables, and the research reached the effectiveness of the exchange rate channel without other channels to transmit the impact of monetary policy to the macroeconomic variables in Iraq, and this is what made the monetary authority stick to a policy The window of selling foreign currency for its ability to control liquidity levels and sterilize the economy from the undisciplined economic policies of the macroeconomic management partners in Iraq.            

Abstract

Artificial intelligence (AI) applications are essential for enhancing payment security and improving customer experience in financial institutions. This research aims to examine the challenges faced by Mastercard in Australia and Visa in Singapore in implementing these technologies. The study focuses on three main areas: challenges related to fraud and privacy, the strategies employed by both companies to address these challenges, and the impact of AI applications on customer satisfaction and trust. The research adopts an analytical methodology that combines both qualitative and quantitative data, relying on diverse sources including academic studies and annual reports. The findings reveal that the effectiveness of AI applications varies across the two markets, reflecting different responses to local challenges. For instance, Mastercard demonstrates a greater reliance on machine learning technologies in Australia to combat fraud, while Visa in Singapore focuses more on enhancing privacy and data protection. The study offers strategic recommendations aimed at improving payment security and customer experience, such as increasing transparency in data usage and strengthening communication with customers. This research contributes to a deeper understanding of the role of AI in financial services, providing valuable insights for companies and practitioners in the sector. By addressing the unique challenges of each market, customer satisfaction can be enhanced and greater trust in digital payment services can be fostered.

Abstract

This research aims to explore the role of accounting in improving the financial performance of both public and private institutions, focusing on how modern accounting tools such as Enterprise Resource Planning (ERP) systems and cloud-based accounting software can enhance financial efficiency and increase transparency. The study adopts a descriptive-analytical approach, using surveys to collect data from accountants and financial managers within various institutions. Financial performance was assessed using key financial indicators such as Return on Investment (ROI), Return on Assets (ROA), liquidity ratios, and profitability ratios. Additionally, the research analyzes the economic and regulatory challenges institutions face in implementing modern accounting systems and the impact these challenges have on the accuracy of financial reporting. The findings indicate that the use of modern accounting systems significantly improves financial efficiency by accelerating the process of data collection and analysis, thus enabling more accurate strategic decision-making. The results also reveal that institutions face economic and regulatory challenges, such as changes in laws and regulations, which affect the effectiveness of accounting systems.

The research concludes that adopting modern accounting systems positively impacts financial performance but requires a flexible environment to adapt to economic and regulatory challenges.