The Compatibility of Profitability and Liquidity in the Light of Banking Competitiveness: Al-Khaleej Commercial Bank as a Sample for the Period (2005-2019)

• Post by: Muthanna mjdes
• October 24, 2022
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Ghassan Tariq  Zahir ^*a        &     Falah Odeh Habib ^b

Al-Muthanna University / College of Administration and Economics.

Abstract                                

The research aims to analyze Profit and liquidity pathway in light of the intense competitiveness of Al Khaleej Commercial Bank. The study aims  to know the efficiency of the bank’s management fiduciary and how to employ them in profitable investment fields. The study also analyzes the compatibility of  the bank liquidity gap and the balance sheet gap, and the impact of net interest by changing prices. By adopting the method of the ladder of maturity in assets and liabilities. The research focuses on the problem of balancing between return and risk in managing liquidity, which is a continuous challenge and a daily problem facing commercial banks, including the management of Al- Khaleej Commercial Bank for the period 2005-2019. This is clear through analyzing the bank’s statement of financial position in applied analysis, enhanced by the standard method using the var methodology. The results of the analysis indicated high liquidity ratios, which reflect the bank’s ability of the research sample to fulfill its obligations without prejudice to the depositors ’funds. However, the rates vary, which reflects its commitment to the permissible limits specified by the Central Bank. The research recommends the following :  It is essential for commercial banks to possess high quality assets, as these assets have the high classification that was specified in the asset classification criteria table, which means that they obtain a strong or satisfactory rating for the quality of their assets.

DOI:10.52113/6/2021-11-3/21-35