Bank Of Iraq Research Articles

The Mediating Effect of Service Quality on Total Quality Management and Customer Loyalty in Banking Sector

The aim of the research is to scrutinize the effect of TQM on customer loyalty through the mediation of quality service. The data was collected from workers of private banks in Iraq. Cluster sampling technique was used to collect the data. There were 390 employees taken as a sample size. The finding demonstrates that the effect of TQM practices on customer loyalty is significant. The significant mediating effect of quality service between the association of TQM and customer loyalty. In the end, the implication of the study is the private banks implement TQM practice effectively so that it has more a great impact on customer loyalty.

رقمية العمليات المصرفية ودورها في تعزيز الشمول المالي (دراسة لعينة من المصارف التجارية في العراق للمدة 2017-2022)

لقد أحدث ظهور التحول الرقمي ثورة في المشهد المالي التقليدي. حيث قدم خدمات سريعة وفعالة للمستهلكين مع خفض التكاليف للمؤسسات المالية. ومع التقدم المستمر في التحول الرقمي من المتوقع أن تنمو صناعة رقمية العمليات المالية بسرعة في السنوات المقبلة مما يوفر إمكانية وصول أكبر الى الخدمات المصرفية وزيادة الشمول المالي في جميع انحاء العالم. كان السؤال الرئيسي الذي تم تناوله في هذا البحث هو: ما هو تأثير ودور التحول الرقمي في تعزيز الشمول المالي؟ وتشير النتائج الى ان التحول الرقمي له تأثير إيجابي وذو دلالة إحصائية على الشمول المالي. وتظهر نتائج الدراسة أيضاً أن الشمول المالي يلعب دوراً محورياً في الوساطة في تأثير السلبي لرقمية العمليات المصرفية

The Effect of Onboarding Employees on Talent Retention: A field research in a Sample of Iraqi Private Banks

The purpose of this research is to understand the nature of the relationship and the level of impact between employee onboarding and talent retention. Employee onboarding assists employees adapting the social aspects of the organization and their new roles more easily, thereby increasing their productivity, satisfaction, and loyalty. The research also aims to identify the factors that encourage employees to stay with the organization. The research problem is highlighted by a talent shortage and the difficulty of identifying the factors that facilitate the integration of employees into the workplace and their retention within the organization. Moreover, it seeks to determine the extent to employee onboarding as one of the essential requirements for organizations, affects talent retention and prevented loss them. the research was conducted in 12 private banks in Iraq, with a total of 147 respondents from employees in the upper and middle-level management positions. The primary data collection tool is a questionnaire. Data analysis and hypothesis testing were conducted using various computer software programs such as (SPSS V. 26) and (Amos V. 26). The results of the research indicate a significant impact of employee onboarding on talent retention.

Financial technology fiutech and its impact on achieving banking profitability, a study of a number of private commercial banks in Iraq

Financial technology fiutech and its impact on achieving banking profitability, a study of a number of private commercial banks in Iraq

The Impact of Digital Banking on Banking Competition: A Case Study of a Sample of Iraqi Commercial Banks

This study aims to measure and analyze the extent of digital banking's impact on the banking competition of three commercial banks in Iraq for the period of 2016-2022. These banks are the Bank of Baghdad, the Iraqi Middle East Bank, and the National Bank of Iraq. The current study employed a deductive approach and used the Panel ARDL methodology, which shows the effect of independent variables in the short run and long run on the dependent variable. The study concluded that there is a statistically significant relationship between the independent variables and the dependent variable. The estimation results revealed that the coefficients of two determinants of digital banking, which are the independent variables affecting banking competition, are consistent with economic theory, while one independent variable contradicts economic theory. It was found that the Bank of Baghdad is the best in reflecting its use of digital banking in its banking competition, followed by the National Bank of Iraq in second place, closely behind the Bank of Baghdad, and the Iraqi Middle East Bank came in third and last place.

Electronic Auditing and Its Impact on Achieving Quality Financial Reports An Exploratory Study at Al-Tafif Islamic Bank, Babylon Branch

This research aims to determine the effectiveness of electronic auditing in improving the quality of financial reports. To achieve the objectives of the study, a cross-sectional survey method was used to collect data from a sample of employees working at Al-Taif Islamic Bank (Babylon Branch), and primary data was collected using structured electronic Likert-scale questionnaires. SPSS statistical software was used to analyze the collected data; The results of the analysis concluded that electronic auditing improves the quality of financial reports in Iraq. The study concluded that banks should adopt the effective and expanded use of electronic auditing because it provides independent, honest and reliable financial audit information. Banks in Iraq must adopt effective and expanded use of electronic auditing to ensure the detection of financial fraud, thus closing routine financial loopholes.

Analyzing the Impact of Financial Stability Using the General Aggregate Index Technique for A Sample of Iraqi Private Banks

Studying the state of general financial stability from the perspective of commercial banks and the extent of their application of its indicators is one of the important topics that has received great attention internationally. The problem of the study, which bears the title (Analysis of the impact of financial stability using the general aggregate index technique for a sample of Iraqi banks for the period from 2015 to 2021) is focused on the question: Next: Do commercial banks in Iraq have an impact in achieving financial stability in Iraq if the financial stability rates applied by the Central Bank are applied? The study came in two main parts, the first of which dealt with the theoretical framework of financial stability in terms of the concept, challenges, risks, characteristics and components, while the second dealt with the theoretical framework of financial stability in terms of the concept, challenges, risks, characteristics and components. He touched on showing the extent to which the study sample of commercial banks in Iraq applied financial stability rates through financial analysis of indicators. Thus, the study showed a number of conclusions. 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 keeping pace with the external environment, other global indicators must be applied, and the position of the commercial banks in the research sample was concluded on the basis of financial analysis, which shows an impact in achieving financial stability.

The Influence of Credit Risk Using Derivative Financial Instruments on the Performance Commercial banks

The research aims to reveal the influence of credit risks using Derivative Financial Instruments (DFIs) on the financial performance of commercial banks in Iraq. To achieve the research aim and test its main hypothesis, a questionnaire is distributed to listed commercial banks in the Iraq Stock Exchange and that apply DFIs. The researcher used the questionnaire as the main tool in collecting data. Financial data of the variables of the study are analysed by a simple regression method, the arithmetic mean(AM) and standard deviation. The study used the statistical program (SPSS ) to analyse the data. The research sample consisted of (70) questionnaire forms that were distributed and (68) valid forms were recovered. Research results show that using DFIs reduces exposure to interest rate risks, exchange rates and price fluctuations. The financial crisis is the result of the excessive use of financial derivatives outside regulatory restrictions and securitization to collect liquidity. Financial derivatives represent the fastest-growing form of financial transactions and continue to grow even in crisis conditions. DFIs help to identify risks associated with economic losses incurred by the economic unit as a result of weaknesses in the management and operation of derivatives contracts. Accounting profit-based performance indicators, such as return on assets, return on property rights, earnings per share and cash flows per share, contribute to the evaluation of performance, as well as the use of DFIs contribute to increasing profits. The study shows that credit risks using DFIs have a significant positive influence on performances financial in commercial banks in Iraq. Paper type: Research paper.

The Impact of Business Process Reengineering on the Quality of Banking Service: An Analytical Study in Public Commercial Banks in Iraq

The current research aims to test the impact of business process reengineering on the quality of banking services in public commercial banks owned by the state in Iraq. It also aims to identify the level of interest of AL- Rafidain Bank, Rashid Bank, and Trade Bank of Iraq in the research variables, in an attempt to provide a set of recommendations to contribute to improving managerial practices. The research adopted a descriptive-analytical approach in completing its chapters and sections. The study was conducted in public commercial banks in Iraq, which constituted the research population. The purposive stratified sample consisted of 170 respondents from the leadership positions of the three banks (branch managers, department managers, assistant general managers, and general managers). They were given the research instrument "questionnaire," of which 150 were valid. The questionnaire was supplemented with interviews and additional data. The researchers analyze the preliminary data, relying on descriptive and analytical statistical methods. The statistical tests included normality tests, exploratory factor analysis, confirmatory factor analysis, validity and reliability tests, mean, coefficient of variation, standard deviation, simple linear regression, and multiple regression to test the hypotheses representing the main research questions. The research findings showed a statistically significant impact of business process reengineering on the quality of banking services. Paper type: Research paper.

Future prospects for the implementation of the Istisna’ contract in the Islamic banks in Iraq

Future prospects for the implementation of the Istisna’ contract in the Islamic banks in Iraq

The Early Warning of Financial Failure for Iraqi Banks Based on Robust Adaptive Lasso Logistic Regression

It is well known that there are many mathematical financial failure models that have been proposedin the financial literature for specific stock markets. Some researchers are not aware these mathematical modelswere constructed to be fitted for that market data, not for other markets. Iraq stock market exchange is one of thesemarkets in which the researchers used imported models such as Kida, Sherrod, Altman, and others to predictfinancial failure. Therefore, the development of a financial failure warning model for banks has become verycrucial for the Iraqi bank sector in the stock market exchange. Unfortunately, there is no clear information aboutthe financial failure of Iraqi banks as a response variable, and the financial indicators contain outliers. Theobjective of this paper is to propose an algorithm to know the performance of efficient and inefficient banks basedon their indicators during specific time periods. The output of this algorithm will be considered as responsevariables. Then, a weighted adaptive lasso logistic regression algorithm that has a high breakdown point is used totackle outliers’ problem. Thirteen banks have been chosen as the most traded during the period (2010-2017), andfor each bank (27) financial indicators were collected. Our proposed model is compared with adaptive lassologistic regression by using Deviance, Misclassification, Area Under Curve, Mean Square Errors, and MeanAbsolute Errors. Consequently, the results showed that the weighted Adaptive Lasso Logistic Regression model ismore robust and relevant than others to be a financial model to warn of the failure of the banks in Iraq's stockmarket.

The Impact of Electronic Human Resources Management in Achieving Entrepreneurship

The current study aims to understand and analyze the relationship between the independent variable, electronic human resources management, represented by its dimensions (E-recruitment, E-training, E-development, E-performance evaluation, E-compensation), and the dependent variable is entrepreneurship with its dimensions (creativity, initiative, risk-taking), and the researcher adopted on a scale through the statistical program (SMART PLS) analysis of these dimensions to analysis the sample of 7 commercial banks in Iraq. The research problem was represented by the following question: (Is their perception and awareness of the benefits of electronic human resources management in achieving entrepreneurship), too many results, the most important of which was the presence of a positive correlation with moral significance between the variable electronic human resources management and entrepreneurship. This indicates any integration between the variables. The study came out with a set of recommendations, the most important of which was that the company must keep pace with new and continuous developments and releases, and include these releases in its products more widely than they are now to face the changes. Which may occur in customer desires due to technological innovations in the product. The electronic human resources system must be applied in all organizations because it contributes to achieving entrepreneurship.

The Role of Knowledge Management Processes in Enhancing the Quality of Banking Information Systems: An Applied Study in the Iraqi Islamic Banking Sector

The study aimed to identify the role of knowledge management processes in enhancing banking information systems in Iraqi Islamic banks (Iraqi Islamic Bank for Investment and Development, National Islamic Bank, Al-Elaaf Islamic Bank, Islamic Cooperation Bank for Investment, Al-Ataa Islamic Bank for Investment and Financing). The total number of employees in these banks was 2,300 across all branches. A random sample representing senior, middle, and executive management was selected, totaling 320 individuals. Various statistical methods were used to achieve the study objectives, relying on structural equation modeling using the SmartPLS3 software. The study reached several results, the most important of which was the statistically significant relationship. It was found that Islamic banks in Iraq have shown an acceptable level of attention to knowledge management processes. However, they still need to exert more effort in practicing knowledge generation, storage, and sharing to activate and enhance banking information systems. The study recommends that Islamic banks in Iraq provide continuous training and educational programs for employees to increase awareness of the importance of knowledge management and enhance effective practices in knowledge generation, storage, and sharing. Furthermore, the study suggests conducting future research by introducing other variables, such as financial technology and artificial intelligence, to enhance banking information systems

Estimating Cost Efficiency Function and Market Power Indicators of Commercial Banks: An Empirical Study of Iraq

Even though the commercial banks in Iraq faced various issues, especially after the banking sector in Iraq gained recognition in 2004. The scarcity of empirical evidence on the real issues facing the banking sector makes it difficult for decision-makers and policymakers to take adequate measures to address potential problems. This paper contributes to the empirical literature by measuring and analyzing cost efficiency in addition to the Lerner index to measure the power of the banking market in Iraq. A sample of panel data is utilized from 20 Iraqi commercial banks for the period 2010-2020. The data envelope analysis DEA is used to measure banks’ cost efficiency. The empirical results gave evidence of a decrease in the price cost efficiency index in the banking sector during the transitional period, and the Lerner index gave negative results, which is an indication of the decline in the market power of Iraqi banks. This paper suggests that studies should be expanded to measure the power and weaknesses of the banking sector, which led to a decrease in the cost-price efficiency and the strength of the behavior.

The Role of Reengineering Operations in Achieving Banking Sustainability - A Case Study on A Sample of Employees in Iraqi Private Commercial Banks

The study aims to know the role of reengineering processes (process design, service quality, technology) in achieving banking development in its three dimensions (economic, social, and environmental) in Iraqi private commercial banks. The descriptive analytical approach was adopted by distributing a questionnaire to a sample of workers in those Banks (338 ) from various administrative levels. The most prominent results were the existence of a positive relationship between reengineering processes and banking sustainability and that Reengineering has an impact on achieving sustainability in banks through redesigning operations and enhancing the quality of service and technology used. The most prominent recommendations were that the management of private banks in Iraq develop appropriate strategies to develop sustainability activities and improve its operations in line with the needs and desires of customers.

The Impact of Internal Control on Increasing The Efficiency of The Iraqi Private Banks

The aim of the study is to highlight the importance of internal control in boosting business efficiency is highlighted by the current study. Internal control is the cornerstone on which the business depends to ensure that operations are effective and efficient, that information is of high quality, and that laws, rules, and policies are being followed. On the other hand, it also guards against and manages risks that might interfere with achieving goals. Data collection and analysis the questionnaire was created by the researcher with 60 correct questionnaires distributed over 6 banks. The study then identifies the most efficient internal control system and suggests ways to boost business efficiency. Population and sampling an online survey were used to get opinions from a sample of accountants working for private banks in Iraq in order to accomplish the research goal and test the hypotheses. The study analyzes the study variables and tests the hypotheses using descriptive statistical analysis (SPSS). The study's most significant findings were that internal control covers all the various security measures used by the business to give reasonable assurance that the goals will be met. In other words, by implementing an effective and efficient internal control system, a business is better prepared to accomplish its objectives and stay clear of traps and unforeseen circumstances.

The importance of banking liquidity in commercial and Islamic banks in Iraq for the period (2017-2021)

The sources of liquidity in commercial and Islamic banks stem from current deposits and savings, which requires the bank to return this money upon request to its depositors, which requires banks to pay attention to studying liquidity because the ratio of deposits to total liabilities is very large, and also that part of these liabilities are short liabilities Term. The research aims to clarify banking liquidity and its importance in commercial and Islamic banks, and for the purpose of achieving this goal, banking liquidity indicators were used in analyzing the data of the annual reports of commercial and Islamic banks listed in the Iraq Stock Exchange for the period 2017-2021, and the data was measured and analyzed and results extracted using Program (Eviews version 13). One of the most important conclusions of the research is that Islamic banks were better than commercial banks in banking liquidity indicators (employment ratio, legal liquidity, legal reserve, cash balance), and accordingly several recommendations were formulated, the most important of which is. The importance of the contribution of Islamic and commercial banks in many investment fields, both locally and globally, which reflects positively on their profits and their banking position in the banking market, which is reflected in the economic growth of the country.

Bank Secrecy (A Comparative Study)

Banks usually work to protect the secrets of their customers in order to protect the credit and it is not permissible to disclose these secrets but only in certain cases for the benefit of the credit or in exceptional cases estimated by law. The present study sheds light on the trends of comparative legislation on the protection of bank secrecy between Iraqi and French laws. The Iraqi law regulated the banking secrecy in the articles (52-49) of the Banking Law, and the French legislator regulated banking secrecy in the Article (57). The legislator also regulated in the law of monetary the financial professional secrecy in Article (511-33) and its paragraphs which prohibited the managers of Banks and its employees to reveal the financial information belonging to the clients of the banks.
 Banks in Iraq and France are subject to the control of the Central Bank and are committed to its regulations especially to reveal and inform about any suspected financial operations or crimes. Banning revealing bank secrecy shall be subject to any information relating to the affairs of the bank or its customers or other banks subject to the supervision of the Central Bank. Finally, the study recommends increasing the penalty for the crime of disclosure of bank secrecy.

Dispute Resolution in Islamic Banking Industry Under The Iraqi Judiciary System

Islamic banking transaction is based on an interest-free system that is prohibited to deal with riba. Several Islamic banks in Iraq are governed by the Central Bank of Iraq. Due to the lack of Islamic financial courts and lack of professional judges in the Islamic financial field, Islamic banking cases are handled by civil courts in Iraq. However, Islamic finance disputes should be considered by special courts with qualified judges in the field. The Judicial Authority in Iraq is not based on the Sharia system and the Sharia court specialised in Islamic finance in Iraq does not exist. As stated in Article 89 of the Iraqi Constitution of 2005 that the federal juridical power is comprised of the Higher Juridical Council, the Federal Supreme Court, the Federal Court of Cassation, the Public Prosecution Department, the Judiciary Oversight Commission, and other federal courts that are regulated under the law. Thus, Islamic banking disputes fall under the civil courts and the Courts of First Instance are responsible to handle cases of debt, and contracts. Furthermore, these courts are not specialists in Islamic banking and finance transactions. Therefore, a particular court, i.e. the Islamic financial court, should be among these courts in Iraq for resolving Islamic banking disputes. In addition, the special court has to include qualified judges who are familiar with Islamic finance.

Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS

This study investigates how corporate governance affects the financial reporting quality of selected banks in Iraq, focusing on the role of IFRS adoption. The research collected data from 298 questionnaires distributed among diverse private banks, including IS Bank, Vakif Bank, RT Bank, Cihan Bank, Bank of Iraq, and TD Bank. Sobel analysis was used to analyze the mediation between variables. The results demonstrate that IFRS adoption plays a positive mediating role in the relationship between corporate governance and financial reporting quality in private banks. The study highlights the practical benefits of implementing strong corporate governance practices and adopting IFRS, such as improved reporting quality, regulatory compliance, better decision-making, and enhanced reputation. Private banks in Iraq can utilize these findings to enhance their financial performance and reputation by shaping their accounting and governance policies. The research paper provides original insights into the positive impact of corporate governance on financial reporting quality while considering the mediating influence of IFRS adoption, making it a valuable contribution to the research community.