Analysis of the relationship of internal determinants to profitability and their impact on banking stability : An analytical study of a sample of Iraqi private banks listed in the Iraqi Stock Exchange for the period

Abstract

This research aims to shed light on the relationship of internal determinants and their impact on banking stability through profitability indicators, and internal determinants with their indicators (bank size, capital adequacy, asset quality, asset management, management quality, financial risks) as independent variables in Iraqi banking stability using the indicator ( Z-Score) as a dependent variable, and the intermediary variable relationship mediates profitability with its indicators (the rate of return on deposits, the rate of return on the right of ownership). 2005-2020), and the study relied on panel data analysis according to (Hausman) test, (Eviews V.12), path analysis method (Path Analysis) and (Amos V.24) program, in addition to a set of statistical programs (Excel). And as the research reached a set of conclusions, the most important of which is that the increased interest of Iraqi banks in profitability indicators contributed to the success of banks and the increase in the factors of confidence and reassurance for shareholders and dealers with the banking sector. The recommendations of this research were: The statistical results showed that the surveyed banks should pay attention to the internal determinants because of their clear positive effects on banking stability