Measuring the relationship between financial safety indicators and profitability indicators, a comparative analytical study of a sample of commercial banks for the Iraq Stock Exchange for the period of time (2005-2019)

Abstract

The study aimed to evaluate the relationship between the indicators of financial safety, as it included the basic indicators and the auxiliary indicators, and these indicators are very important to achieve stability and evaluate the financial soundness of the banking system. The banks listed in the Iraq Stock Exchange have been collectively accredited for the study because of their characteristics and features that distinguish them from other business companies. The study was applied in commercial banks listed in the stock market, numbering (10) banks of the study sample, and a time series that extended (15) Year from (2005-2019) and the study methodology depends on the analytical method as it is more appropriate to the nature of the study, its field and objectives, and the ready-made statistical program “SPSS” will be used to analyze and evaluate the relationship between financial indicators and compare the researched study. The study reached the most important conclusions that financial safety indicators have a fundamental role in analyzing and evaluating the banking sector, and determining the strength and durability of the bank’s financial position and its ability to adapt as long as these indicators are adhered to. The increase in the proportion of liquid assets contributes to increasing the bank\'s profitability by enhancing its ability to cover financial obligations.