Diagnosing banking performance through the Bankometer model for a sample of Iraqi private banks
- Post by: Muthanna mjdes
- November 7, 2024
- Comments off
Abstract
The research aims to use the Bankometer model to diagnose and evaluate the current and future banking performance of a sample of private Iraqi banks and the ability of this model to discover weaknesses and shortcomings to address them on time before they become more severe and to identify strengths to enhance them, and to identify their financial position. The research sample consists of five commercial banks listed in the Iraqi Financial Market for the period from (2013 – 2022). This model was one of the modern models presented by the International Monetary Fund in 2000. Moreover, the model is characterized by containing six financial ratios to form a linear equation (S-Score) through which the performance of the research sample banks can be evaluated and diagnosed as good or bad based on their financial data from the annual reports published on the market website. The financial analysis method was also utilized to extract the results from this model using the Excel program. The research reached a set of conclusions, the most significant of which is that all degrees of evaluation and diagnosis of the performance of the research sample banks (S-Score) according to the model (Bankometer) was higher than the standard limit of 70%, which means that its performance is good. It has a robust financial position and can confront financial crises and reduce financial risks such as financial difficulty. It also reached a set of recommendations, the most important of which are: We recommend that the Iraqi banking sector in general and the sample in particular use this model because of its great importance and its high ability to evaluate and diagnose banking performance to identify strengths and weaknesses to enhance the former and address the latter. It is considered an early warning device for management to make decisions based on this model.
Muthanna Journal of Administrative and Economic Sciences, 2024,Volume 14, Issue 3, Pages 138-150
DOI:10.52113/6/2024-14-3/138-150
