Systematic Financial Risks and Their Reflection on the Market Value of Commercial Banks : An Applied Study on the Bank of Baghdad for the Period 2010-2019
- Post by: Muthanna mjdes
- October 23, 2022
- Comments off
Raid hasan ali & zhraa hussien nashad
Al-Muthanna University/ College of Administration and Economics
Abstract
This research aims to know the reflection systemic financial risks on the market value through, by presenting the analysis and measurement of the relationship of systemic financial risks of the market value of commercial banks ,three of the systemic financial risks have been selected ,represented by credit risks, solvency risks and asset quality risks.
This research has been applied to the Bank of Baghdad (BBOB),for the period(2010-2019). The descriptive analytical approach has been used in describing , analyzing and measuring all the variables through the actual financial data available to the Bank of Baghdad ,with the aim of evaluating and measuring the independent variables, the dependent variables ,and analyzing and interpreting the relationship and the effect between them .
The variance using the program(SPSS rv24)to measure the correlation and impact between the systemic financial risks used in the research and the market value. The research reached a conclusion that all the independent variables : credit risks, solvency risks, asset quality risks are inversely related to the dependent variables of market value.
The research also reached several recommendations the most important of which is that the commercial banks should work to increase their capital, in addition to the necessity of reducing the risks of risk-weighted assets ,as well as employing the increase in low or risk-free investments in order to be able to enhance their market value .
DOI:10.52113/6/2021-11-4/102-115
