Role of Banking Concentration In Achieving Financial Stability - An Analytical Study of Iraqi Commercial Banks For Period 2013-2022

Abstract

The current study aimed to measure the impact of banking concentration on the financial stability of Iraqi commercial banks for the period (2013-2022). Banking concentration was measured by the Herfindahl-Hirschman Index (HHI), while the financial stability variable was measured by the Altman Index (Altman - Z- Score), which is one of the most famous metrics for measuring financial failure or financial distress to which banks are exposed. As for the problem of the study, it addressed the most important economic sectors in Iraq, which is the banking sector, specifically commercial banks. It focused on explaining the extent of the impact of banking concentration on financial stability, and to find out the extent of this Impact: A main question was asked, which is (Does banking concentration affect the financial stability of the commercial banks in the study sample, and does it contribute to achieving the financial stability of the Iraqi banking sector?), The results showed the existence of a significant statistical correlation and impact between banking concentration (HHI) and the HHI index. Financial stability of Iraqi commercial banks, study sample