Managing Earnings Sensitivity and its impact on the Financial

Abstract

The research aims to measure the impact of profit sensitivity management on the financial health of Iraqi banks. The reports published in the Iraq Stock Exchange were relied on for a group of banks and were selected depending on the availability of data. The sample includes (5) Iraqi commercial banks (Bank of Baghdad, Al Sharq Al-Awsat bank, the Iraqi Investment Bank, the National Bank of Iraq, and the Mosul Bank for Development and Investment) for the period from 2008-2017, the method of cross-sectional data analysis (Panel Data) was used by the ready program (EViews v.12). The research reached a set of conclusions, the most important of which is that the research sample banks have a positive interest rate sensitive gap, that is, they have interest rate sensitive assets greater than interest rate sensitive liabilities. The research also presented a set of recommendations, the most important of which is the need for the board of directors to pay attention to the financial health of the bank to face a competitive strength and to amend the balance sheet paragraphs to reduce the sensitive interest rate gap.