الجامعة المستنصرية / كلية الادارة والاقتصاد

Abstract

Flexibility is one of the most important tools of economic analysis that helped prove the nature of economic relations. In many cases, it was used to infer the principle of conformity between reality and theory. Dropping the scale of flexibility is a criterion for judging the credit activity of commercial banks. It is very important because these banking financial institutions are Economical institutions, it is important to diagnose those aspects related to profits, profitability, liquidity, safety, and everything related to financial analysis and the division of banking performance, but the most important is to know the economic feasibility and the nature of credit responses granted by commercial banks to economic variables, and any of these variables has the power to influence and stimulate credit activity. Therefore, this policy is a continuation of all studies that focused on the aspects of profitability and liquidity to focus an attempt to reach important results regarding the factors that contributed to the reduction or expansion of credit activity and the relationship between government commercial banks on the one hand and private commercial banks on the other. Therefore, the study started from the problem of not playing a leading role in the Iraqi economy by commercial banks to achieve economic development so far. The study aims to try to reveal the nature of economic relations and judge the extent of their strength or weakness to determine the most important of the variables to recommend targeting by the monetary authority. The most important conclusions are that the price flexibility of credit showed the importance in analyzing private banks compared to their results in government banks, and this means that the public deals with government banks regardless of interest rates because they are a source of confidence stemming from government ownership of them. And that the internal flexibility of credit showed the importance of the income component in each of the government commercial banks as a catalyst for credit activity, demand, and supply.