The impact of loan growth determinants on financial strength indicators an analytical study of a sample of private banks listed in the Iraq Stock Exchange

Abstract

The study aimed to test the effect of the determinants of loan growth represented by (the growth rate in deposits, the percentage of deposits on assets, and the percentage of owners' rights on assets) on the indicators of (financial strength) for a sample of Iraqi private banks listed in the Iraq Stock Exchange. The problem of the research was the excessive growth in loans that leads to instability of banks, and specifically the rise in credit risk. Avoiding financial crises, as well as the efficiency of economic resources, is best said by private banks listed on the Iraq Stock Exchange. The study relied on the statistical program (SPSS). To test the research hypothesis, the research concluded that the determinants of loan growth have a statistically significant effect on financial strength, and the research concluded with many recommendations, the most important of which is the need for banks to have sufficient knowledge of the determinants of loan growth and the extent of their impact on financial strength.