The challenges and risks facing financial stability in Iraq and the extent to which commercial banks apply financial stability Indicators

Abstract

Studying the state of financial stability from the perspective of commercial banks and the extent of their application of its indicators in parallel with the risks and challenges surrounding the state of financial stability is one of the important topics that has received great attention internationally at the financial, economic, and academic institutional levels. The problem of the study is focused on the following question: Do commercial banks in Iraq have an impact? In achieving financial stability in Iraq, if the financial stability ratios in force by the Central Bank were applied? And what is the extent of that application? The hypothesis of the study was that commercial banks applied varyingly the ratios of financial stability indicators, whereas the null hypothesis that banks did not apply the ratios applicable by the Central Bank, thus moving away from achieving financial stability in general. As for the alternative hypothesis, which is that commercial banks apply those ratios and thus financial stability is achieved, the study also aimed to introduce financial stability, review the challenges and risks affecting it, and focus on commercial banks in terms of their application. The study included two chapters. The first dealt with financial stability in terms of definition, concept, challenges, and risks. The second showed the extent to which the study sample of commercial banks in Iraq applied the financial stability ratios applied by the Central Bank through the financial analysis of indicators. Thus, the study showed a number of conclusions and recommendations. One of the most important conclusions was that the state of financial stability in Iraq depends to a large extent in achieving it on commercial banks, which must be developed and kept pace with the external environment, and that financial stability indicators in Iraq are not sufficient to measure financial stability accurately, and the position of the commercial banks in the research sample was concluded on the basis of Financial analysis of the ratios extracted within the applied aspect of the study.