Measuring and Analyzing the Contagion of Banking Liquidity Crises Between Profitability and Competitiveness. The Middle East Commercial Bank as a Model for the Period (2005-2019)
- Post by: Muthanna mjdes
- October 23, 2022
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Ghassan Tariq Zaher *a & Falah Odeh Habib b
Al-Muthanna University / College of Administration and Economics.
Abstract
Commercial banks compete in order to win more customers to maximize their assets and may sometimes exceed the decisions and laws specific to bank liquidity ratios. This is reflected on their performance. The factor of balancing between liquidity and profitability is one of the most important issues that face banking activity in light of banking competitiveness which the Iraqi commercial banks are subject to. Accordingly, the study aims to analyze the liquidity factors and their impact on profitability in light of the competitiveness of commercial banks and the specific laws for the period (2005-2019). The problem of the study is represented by the difficulty of determining the optimal liquidity ratio in Iraqi commercial banks in terms of balancing their obligations towards depositors and borrowers in monetizing their funds, and the risks they are exposed to, as well as the intensive competition among them. The study sought to achieve the main objectives, which were represented by : identifying the possibility of Iraqi commercial banks applying the ratio of liquidity and profitability according to the indicative regulations and instructions issued by the Central Bank of Iraq, employing them in profitable areas, and determining the size of the risks associated to them.
DOI:10.52113/6/2021-11-4/233-251
