Credit Risk and its Impact on Profit Quality (An Applied Study in a Sample of Commercial Banks Registered in the Iraq Stock Exchange 2011-2020)

Abstract

This research aims to present the analysis and measurement of the impact of credit risks on the quality of profits for commercial banks. This research was applied to a sample of commercial banks listed in the Iraq Stock Exchange that were selected according to the date of their establishment, namely, the Commercial Bank of Iraq (BCOI), Bank of Baghdad (BBOB), for the period 2011-2020, and the descriptive analytical approach was used in describing, analyzing and measuring all the variables from Through the actual financial data available from the research sample banks, with the aim of evaluating and measuring the independent variable (credit risk) and the dependent variable (profit quality), and analyzing and interpreting the relationship and the effect between them. The analysis of variance was used using the program (spss rv20) to measure the correlation and effect between the results of the study. The credit risk was used in the research and the quality of profits, and this research reached a set of conclusions within the framework of its main and subsidiary hypotheses, which can be summarized as follows, it appeared that there was a correlation with a significant impact and statistical significance between credit risk and the quality of profits in commercial banks, the research sample. And its benefits are on their due dates, so banks should seek the assistance of experts who have practical competence and benefit from their expertise and advice regarding credit risks in particular, bearing in mind that there are other determinants that commercial banks must take caution and try to monitor and control them constantly.