Determinants of loan growth and its impact on banking stability An applied study in a sample of commercial banks listed in the Iraq Stock Exchange for the period (2005 - 2020)

Abstract

The research aims to measure the impact of the determinants of loan growth on banking stability, because granted loans play an important role in economic growth. The research sample included ten commercial banks listed in the Iraq Stock Exchange, which are (Baghdad, Iraqi Commercial, Investment, Sumer, Middle East, United, Al-Ahly of Iraq, Credit, Business Bay, Mosul for Development and Investment). For the period 2005-2020, where its financial data was obtained through its annual reports published in the Iraq Stock Exchange.  The determinants of loan growth were measured through financial indicators (loans to deposits ratio, deposits to total assets, deposit growth, bank size, and bank age), and then banking stability was measured through the (Z-Score) indicator.  Research variables The data was relied on the Panel Data using the program (EViews v.12) according to the models (aggregate regression model, fixed effects model and random effects model), and the research found a significant effect of the determinants of loan growth on banking stability.