Iraqi Banks Research Articles

THE IMPACT OF INTERNAL AUDIT ON THE EFFECTIVENESS OF BANKING RISK MANAGEMENT (APPLIED STUDY ON A SAMPLE OF IRAQI BANKS)

In light of the scientific and technical progress in all aspects of life, banks need a control and auditing system to protect them from the risks they are exposed to as a result of their diverse financial dealings, to reduce or avoid losses and maintain and support banks to carry out their work in a way that enables them to achieve a competitive advantage. The problem is embodied in the extent of the contribution of internal auditing in how to manage banking risks and demonstrate their effectiveness in banks. It aims to stand on the reality of internal auditing and the extent of its application in Iraqi banks, with the importance of identifying the functions of internal auditing in auditing, evaluating and following up on the efficiency and effectiveness of risk management procedures based on the risk-based auditing approach. In addition to the commitment to applying the standards, principles and guidelines issued by the Institute of Internal Auditors or issued by the International Organization for Banking Supervision that govern the performance of the internal auditor and help him identify obstacles and find solutions to support and succeed in risk management in the two banks. The research sample used the questionnaire in the practical aspect to show the effectiveness of internal auditing in managing banking risks and to come up with a number of recommendations, the most important of which are: Continuing work to enhance and develop the skills and knowledge of internal auditors by holding training courses on how to deal with banking risk management to enable them to perform their work effectively, and for banking institutions to support the components of the independence of the internal auditor to perform his work efficiently.

The Impact of Cash Liquidity and Financial Leverage on The Performance of Iraqi Banks: A Comparative Study Between Islamic and Conventional Banks

Degree of financial leverage refers to the percentage of bank assets financed through debt, which banks must employ to achieve returns and cover costs, as well as the availability of cash at maturity. Therefore, the problem of the study arises in how the indicators of leverage and cash liquidity affect the indicators of financial performance in the Iraqi banking sector. That is why the study aims to use econometrics to demonstrate the impact of leverage and cash liquidity on the financial performance indicators represented by return on assets (ROA) and net profit margin (NPM) for a sample of 38 conventional and Islamic banks for the period 2010-2022. The Dynamic Panel Data methodology was used to determine the relationship between variables, which combines time series and cross-sectional, precisely the generalized moment method (GMM). Results show that financial leverage negatively and significantly impacts ROA and NPM indicators in the total sample and Islamic and conventional banks, except for the positive relationship with ROA in conventional banks. The results also showed the positive impact of cash liquidity on ROA and NPM indicators in the total sample and Islamic and conventional banks, except for its negative impact on ROA indicators in conventional banks. The results also showed the negative impact of the cash credit (cash credit to total assets ratio) on ROA and NPM indicators in the total sample and Islamic and conventional banks. Paper type: Research paper

THE ELECTRONIC ACCOUNTING INFORMATION SYSTEM AND ITS ROLE IN ENHANCING FINANCIAL INFORMATION SECURITY AND ITS EFFECTIVENESS IN THE QUALITY OF FINANCIAL REPORTS (AN APPLIED STUDY ON A SAMPLE OF IRAQI BANKS)

Objective: The study aimed to identify the electronic accounting information system and its role in enhancing financial information security and its effectiveness in the quality of financial reports in Iraqi banks. Theoretical Framework: In this topic, the main concepts and theories that support the research are presented. [The basic concepts of electronic accounting information system, financial information security, and financial reporting quality] are highlighted, providing a solid foundation for understanding the context of the investigation. Method: This study relied on the descriptive analytical approach in order to formulate the problem and clarify the importance of the study and its objectives, as well as to develop a set of hypotheses to verify their validity. The study community represented all banks listed in the Iraq Stock Exchange, while the sample was summarized as (10) banks. The researcher surveyed the opinions of all employees in private banks in Baghdad Governorate. The study community may consist of 1400 employees from all different administrative levels. The study sample was selected at a rate of 30% of the study community, as the sample size reached (400) individuals. The study community was divided into different classes according to the nature of the work of those banks. Results and Discussion: The study concluded that the banks in the study sample are exposed to various risks due to the use of electronic systems, in addition to the reasons for the existence of links and effects between the study variables. Research Implications: The necessity of increasing attention to the presence of a competent and scientifically and practically qualified human element in banks because it makes the electronic accounting information system worthy of improving the security of financial information through the effectiveness of the quality of financial reports. Originality/Value: Despite the advantages of systems, whether from outside or inside the organization, there are a set of risks surrounding the use of these systems, which come from various sources, including (human resources risks, hardware and equipment risks, software risks). (Risks, database risks, software risks, network risks), each risk has a different impact and may cause huge financial losses to the organization, because the occurrence of these risks will lead to direct damage to information (accounting) and accounting quality. The information owned by the organization.

An evaluation of financial statement quality in pre-versus post-IFRS-7 implementation: the case of Iraqi banking industry

This study compares Iraqi banking financial statements before and after IFRS-7 financial instruments disclosure. “Nijmegen Centre for Economics (NiCE)” qualitative content analysis was used to assess financial statement quality, which was measured using NiCE disclosure index. This study analysed data using a paired sample test to meet its goals. After IFRS-7, financial reporting quality is represented by 2016–2018. Before IFRS-7, it was represented by 2013–2015. In addition, the OLS regression analysis was implemented to assess hypotheses, incorporating data from 24 Iraqi institutions. The univariate analysis (t-test) and OLS regression showed that IFRS-7 improves financial statement “relevance, faithful representation, comparability, and timeliness”. No correlation was found for “understandability”. This study is the first to use Iraqi data and the most recent disclosure index to test the relationship between financial figure quality before and after applying the IFRS-7 financial instruments disclosure standard in developing countries. The results help regulators and policymakers regulate IFRS in Iraq and suggest policy changes to ensure compliance. The findings have major implications for business and policy that executives, lawmakers, and stockholders should consider. This study is applicable to ME countries that share comparable institutional, cultural, and accounting framework characteristics.

The importance of financial ratios in determining profit distribution policies for a sample of Iraqi banks

This study aims primarily to demonstrate the importance of four types of financial ratios, namely profitability ratios, turnover rates, activity cost ratios, and financial leverage ratios, as well as to explain their impact on cash dividend distribution policies for a sample of Iraqi banks traded on the Iraqi Stock Exchange for the period (2010 - 2017). The number of banks was chosen from the Iraq Stock Exchange (13 banks), and the data for the aforementioned time period was taken according to the bulletins and financial statements issued by the official website of the market. After conducting statistical analysis of the data using the statistical package program (SPSS), where the sample size used was (104) observations, and the number of independent variables was (9), which represent the financial ratios, it was found that there is a significant impact of these financial ratios on determining profit distribution policies, and the study recommended to the specialists In the financial field, using these ratios and focusing on them in the financial analysis aspect.

The impact of accounting disclosure according to the standard (IFRS-16) lease contracts on the efficiency of the finan

IFRS-16 standard showed changes in the quality of disclosure and accounting treatment of lease contracts, which was reflected in the information content of the financial statements. The research deals with the statement of the impact of applying IFRS-16 standard on the efficiency of the financial performance of banks by measuring the level of performance according to financial indicators. The research aims to evaluate the changes in reclassifying lease contracts to financing and operating on the financial position of banks. The financial analysis method was adopted, relying on some of the main financial indicators to evaluate the financial performance of Mansour Investment Bank, the research sample, such as the ratio of debt to equity, the ratio of fixed assets to equity, and some other indicators. The most important conclusions are that there is a clear impact in applying the standard on the efficiency of the bank's performance, the research sample. The most important recommendations are the necessity of applying the standard to all Iraqi banks in order to enhance the qualitative characteristics of accounting information in financial statements and increase the efficiency of these banks in the financial markets.

The importance of using technology in financial operations to further improve banks’ profitability

The study aimed to determine the status of technology use and financial operations performance and its impact on profitability indicators. Is there interest in technology among banks and to what extent are banks able to provide advanced services and keep pace with developments? The major developments in modern technology have contributed to the application of modern methods of dealing with customers and banks. These recent changes have made it necessary for Iraqi banks to advance the reality of technology and the performance of financial operations to improve profitability in banks. It has also clarified the importance of using technology and banking services and the role they play in serving customers by taking advantage of these technological developments. This study assumes that the use of technology and the performance of financial operations affect the indicators of banks' profitability. To prove the hypothesis of this study, the data shown by the questionnaire were presented and the sample responses were analyzed regarding the performance of financial operations and enhancing the bank's profitability using technology. Frequency distribution tables for the study variables were prepared and adopted for the purposes of the statistical analysis process to obtain the weighted arithmetic means, standard deviations, and the coefficient of variation, to know the impact of the variables. The study concluded that technological developments have been reflected positively in the banking sector. The researcher concluded the study with a set of suggestions and recommendations to develop and keep pace with technology to increase competition between banks, serve customers, and achieve profitability, including addressing the development of technology.

Analysis of Banking Risks According to IFRS 7 and its Impacts of Financial Failure Forecasting in Iraqi Private Banks

Understanding the relationship between financial risks and the likelihood of financial failure is crucial for both practitioners and academics. A proper comprehension of these issues helps the banking sector avoid the consequences of failure and enhances risk management practices. The purpose of the current paper is to determine the impact of financial risk analysis according to IFRS 7 in predicting financial failure. A sample of six well-established Iraqi banks was selected, and their financial statements were analyzed for the period from 2019 to 2023. Using a quantitative approach, financial risks were measured through a set of appropriate financial ratios and methods. Financial failure was assessed using the Sherrod model. The results indicated that the financial risks associated with the operations of Iraqi banks ranged from moderate to high, and that risk management practices varied significantly between banks. The findings revealed that the surveyed banks fell within the zone of non-failure indicators. Additionally, the results showed a positive impact of the three types of risks in contributing to financial failure within the sector's banks.

Comparison between internal and electronic clearing systems for checks: A case study pertaining to the Iraqi banking industry

Comparison between internal and electronic clearing systems for checks: A case study pertaining to the Iraqi banking industry

The Impact of Monetary Policy on Credit Reporting in The Iraqi Banking System

The Impact of Monetary Policy on Credit Reporting in The Iraqi Banking System

The role of deposit insurance systems in improving liquidity risk management in Iraqi banks

The role of deposit insurance systems in improving liquidity risk management in Iraqi banks

دور التكنولوجيا المالية في تعزيز الشمول المالي: دراسة تحليلية للقطاع المصرفي العراقي للمدة 2017-2022

تهدف الدراسة الحالية الى توضيح الدور الحقيقي الذي تضطلع به التكنولوجيا المالية بوصفها من الاساليب الحديثة للعمل المصرفي في تعزيز الشمول المالي وذلك من خلال بيان قدرتها في المساعدة على انتشار ووصول الخدمات المالية لشريحة واسعة من مؤسسات وافراد في المجتمع العراقي، وذلك من خلال تقديم خدمات مالية بجودة عالية وكذلك بتكلفة منخفضة، بالإضافة الى السهولة التامة في الوصول الى الخدمة. تم اجراء الدراسة بالتطبيق على مجتمع مكون من القطاع المصرفي العراقي وللمدة الممتدة من العام 2017 لغاية العام 2022، كونها المدة الفعلية التي بدأ التوجه الحقيقي للمؤسسات المالية والمصرفية باعتماد الخدمات المالية الالكترونية كأسلوب رديف للخدمات المالية التقليدية، كما اعتمدت الدراسة على المنهج الوصفي والتحليلي في دراسة الجوانب المختلفة للتكنولوجيا المالية والشمول المالي عبر ابعاده الفرعية (سهولة الوصول، حجم الاستفادة، ومستوى الجودة للخدمة المصرفية) وذلك باستخدام البرمجيات الجاهزة ومن ضمنها برنامج SPSS. توصلت الدراسة الى مجموعة من النتائج المهمة ولعل من اهمها ان للتكنولوجيا المالية دور كبير وجوهري في تعزيز الشمول المالي وتحديداً فيما يتعلق بحجم الاستفادة من الخدمات المصرفية الذي يجب ان يكون الأساس في تصميم الخدمة المالية، ومن اهم التوصيات التي قدمتها الدراسة ضرورة قيام ادارة المصارف العراقية بتبني استخدام التكنولوجيا الرقمية الحديثة ضمن استراتيجياتها المستقبلية كونها تساعد الافراد على سهولة وسرعة في الحصول على الخدمات والمنتجات المالية والامر الذي يعود عليها بالفائدة بشكل كبير.

The role of financial intelligence in improving credit risk management in the Iraqi banking sector (Islamic taifib Bank as a model)

The role of financial intelligence in improving credit risk management in the Iraqi banking sector (Islamic taifib Bank as a model)

The impact of good governance on integrated reporting in Iraqi banks

The impact of good governance on integrated reporting in Iraqi banks

Measuring earnings management practices using the M-score Beneish model For Iraqi banks listed on the Iraq Stock Exchange

Measuring earnings management practices using the M-score Beneish model For Iraqi banks listed on the Iraq Stock Exchange

The Impact of Customer Relationship Management on Sustainable Competitive Advantage Mediator Brand Citizenship Behavior: An Analytical Study in a Sample of Iraqi Banks

The research aims to study the impact of customer relationship management on sustainable competitive advantage through brand Citizenship Behavior in a sample of Iraqi banks. The main problem of the research is summarized in the following questions: "have bank leaderships been able to employ customer relationship management in achieving sustainable competitive advantage? And have they been able to maximize this impact through the mediating role of brand Citizenship Behavior?" The comprehensive survey method was used to collect data, given the importance of the banking sector, both government and private banks in Baghdad were chosen as the focus of this study. Commercial and Islamic banks were considered for examination, and the researcher conducted field visits to six banks, including Rafidain Bank, Trade Bank of Iraq, Alnahrain Islamic Bank, Al Taif Islamic Bank, Iraqi Middle East Investment Bank, National Bank of Iraq. The research sample comprised 212 employees from these banks. Data analysis and hypothesis testing were conducted using appropriate statistical tools with the help of (SPSS and AMOS) software. The results revealed a significant impact of customer relationship management on sustainable competitive advantage through the mediating role of brand Citizenship Behavior.

The impact of corporate governance on narrative disclosure and its reflection on firm value: An empirical study on a sample of Iraqi banks

The impact of corporate governance on narrative disclosure and its reflection on firm value: An empirical study on a sample of Iraqi banks

Impact of Audit Committee Quality on the Financial Performance of the Iraqi Banking Sector

Purpose: The purpose of this study is to examine the impact of Audit Committee Quality on Financial Performance in the Iraqi Banking Sector to improve Financial Performance. The agency theory serves as the study’s theoretical underpinning. Design/methodology/approach: The major research design was a quantitative method employing Structural Equation Modelling (SEM). SmartPLS3 was utilized to examine data from a set of respondents who were chosen using a purpose random sampling technique which included the CEO, CFO, accountants, and auditors. The survey questionnaire was disseminated to 386 people, and the collected data were evaluated using a measurement model. Findings: According to the findings, the Audit Committee Components have a considerable impact on financial performance. The relationships were found to be positive and significant whereby Expertise (β =7.422, p0.05), Independence (β =4.549, p 0.05), Size (β=3.736, p0.05), and Meetings (β=3.064, p0.05). The Audit Committee component of Expertise was found to have the most significant impact on financial performance. Research, Practical & Social implications: Implications-wise, this study indicates the need for Iraqi banks to improve the quality of their audit committees towards enhancing their financial performance, also Central Bank should work side by side with Iraqi universities to continue research on the role of Audit Committees. Originality/value: This study provides an overview of the impact of the quality of the audit committee on financial performance and the extent of its importance in the Iraqi banking sector to reduce cases of manipulation and errors in the financial statements of banks. The study recommends the use of independent audit committees to improve financial performance in the Iraqi liquidation sector.

The Role Of International Financial Reporting Standards (IFRS) In Enhancing The Quality Of Financial Reporting Applied Research In a Sample Of Iraqi Banks Listed On The Iraq Stock Exchange

The aim of the research is to show the importance of applying IFRS standards at the international and local levels in Iraqi banks and its reflection. This research used statistical methods and indicators, as the data were collected through the distribution of questionnaires to a sample of international development banks, and Gulf commercial banks, to accountants and auditors working in Iraq, where they were distributed to (226) participants and analyzed using SPSS v 26 and Amos v 26, as well as a study comparing the impact of the application of IFRS-9 before and after by analyzing the financial statements of the above banks. The research included the study of several topics, including an overview of IFRS standards and the quality of financial reports, the definition of international financial reporting standards, the objectives of financial reports prepared for public use, the importance of IFRS, the quality of financial reports, the factors affecting the quality of financial reports, the importance of IFRS standards, the factors affecting the quality of financial reports, the challenges faced by banks in preparing financial reports, the application of IFRS standards, the impact on the performance of banks, the application of IFRS standards, the fair presentation of the financial position, the application of IFRS standards and the presentation of cash flows to banks, and the reality of adopting IFRS standards in Iraqi banks. The research concluded that the presence of interest of Iraqi banks in the application of financial reporting standards in order to enhance the quality of financial reporting, that the level of impact of International Financial Reporting Standards (IFRS) in enhancing the qualitative characteristics of accounting information among Iraqi banks (the research sample), all of which increased the application of IFRS, reflected positively on the qualitative characteristics of accounting information. The research contributes to financial institutions such as banks and banks as a means of providing external users, investors and at all levels with the financial data and information necessary to make rational and correct decisions after the application of IFRS standards.

Controlling Financial Risks' Impact on Accounting Information Quality: Evidence from Iraqi banks

Controlling risk management strategies and implementing preventive actions are essential for creating a secure and conducive environment for individuals and organisations. The study aims to showcase the influence of financial risk control on the quality of accounting information in Iraqi banks. This will be achieved by identifying and assessing risks, as well as designing and implementing suitable procedures to manage hazards. The goal is to produce reliable accounting information that stakeholders can trust. The study employed 154 questions that were delivered to accountants, internal auditors, external auditors, and academics specialising in Iraqi institutions. It consisted of two axes. The initial objective was to evaluate the management of financial risk control in Iraqi banks. The first axis comprised 17 specific questions, while the second axis assessed the accuracy of its accounting information and consisted of 21 questions. The study variables were assessed utilising the statistical software SPSS version 26, while the hypotheses were examined by simple linear regression. The study found that implementing robust procedures and policies to manage financial risks in banks improves the reliability and transparency of their accounting information. This includes effectively addressing various risks, such as geopolitical concerns.