Testing Effect Liquidity and Interest Rate Risk risks in the adequacy of bank capital Application on a sample of the Iraqi private banks | ||
| journal of kirkuk University For Administrative and Economic Sciences | ||
| Article 1, Volume 6, Issue 2, December 2016, Pages 121-144 PDF (748.61 K) | ||
| Authors | ||
| Ilyas Kh. Al-Hamdooni; Ali Ghazi Waedalha | ||
| Abstract | ||
| The aim of the current study is to highlight the financial risks the banks incur and the capability of bank managements in terms of being precautious to reduced those risks and gaining the predicted returns. Hence the importance of the study represented by the adequacy of capital and its relationship with the financial risks in the Iraqi banks emerged. Two models in this research were used ranged between the simple and the multiple regressions in order to test the hypotheses: " The financial risks indicators (the risk of liquidity, the interest rate risk and the credit risk) on the indicator of the adequacy of the bank capital". The research reached several conclusions and the researcher submitted several recommendations. The most important conclusions were: there is a difference between the sample banks in terms of some financial indicators, and the same for the bank throughout the period of the research, as there is no single method which is dominant in the environment of the research. Therefore the activities practiced by each bank are different from the other in accordance with the bank investment and financing policy it adopts, in addition to the variation in commitment to the regulations and instructions issued by the central bank of Iraq. The most prominent recommendations is the commitment of the sample banks to apply the rules and regulations issued by the central bank of Iraq as some of them seem to be determinants or changes in banking. But the status quo has proved that these regulations were introduced for the benefit of the banks and the national economy because banks don’t deal with their capitals only as deposits represents the largest portion of the bank activities and that the commitment of banks will contribute to avoiding the severe crises that might lead to bankruptcy. | ||
| Keywords | ||
| Liquidity Risk and Interest Rate Risk; Basel; Capital Adequacy | ||
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