The competitive advantage and its impact on the loan pricing process for Iraqi commercial banks

Abstract

In view of the importance of the loan pricing process for commercial banks and the importance it poses to their profits and the management of the funds available to them with the aim of achieving the expected return, the study focused on explaining the impact of competition between banks and achieving a competitive advantage over the rest of the banks operating in the banking sector and whether competition has an impact on the prices of loans granted by Banks, where the research assumed a main hypothesis that (there is no statistically significant effect of competitive advantage in the loan pricing process for commercial banks). The study reached a set of conclusions, the most important of which is that there is no effect of competitive advantage in its two dimensions, market share and quality, in the loan pricing process for commercial banks operating in the Iraqi banking sector. The study also recommended the need to give greater freedom to commercial banks by the central bank in the loan pricing process