Credit risk and profitability of Iraqi commercial banks relationship and impact (An analytical, theory study of a sample of Iraqi banks

Khalaf Nejres, Wsam

	Credit risk and profitability of Iraqi commercial banks relationship and impact (An analytical, theory study of a sample of Iraqi banks
Journal of Kirkuk University For Administrative and Economic Sciences
Volume 10, Issue 1, June 2020, Pages 215-242 PDF (1.29 M)
Author
Wsam Khalaf Nejres
University of Kirkuk Journal For Administrative and Economic Science
Abstract
The study aimed to determine the effect of credit risk on the profits of banks in Iraq Where the descriptive approach and the analytical approach were followed to find that effect through the use of data for eight banks. The study found that the higher credit risk of banks, the greater the provision for doubtful debts, Which affects the earnings per share, The size of the capital is the protective barrier to investments, so the profit will increase when the credit become higher, Therefore, the fear of high risks requires extensive studies, and the results reached by using the rate of return on capital as one of the profitability indicators show that the North Bank has the highest profits; Followed by the Credit Bank of Iraq as a result of the increase in their profits, Which shows that they follow a flexible policy during their lending policies with customers in a sequential manner, It is also when the Provisions became high Doubtful debts, In the United Bank, whose profit index (0.17) and the North Bank (0.24) led to a reduction in risk in a striking part, but this reflected on its profitability as it reduced the level of profits directly
Keywords
Credit risk; profitability; commercial banks

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