Measuring and analyzing the impact of monetary and financial policy on the banking capital adequacy index for a sample of Iraqi commercial banks for the period (2005-2020)

Abstract

The study aims to measure and analyze the effects of monetary and financial policies on banking profitability for the period (2005-2020) and in light of the reality that the Iraqi economy is experiencing through monetary policy, which are open market operations, the discount rate, the legal reserve ratio, and financial policy tools, which are public expenditures and public revenues. And the general budget, and how it affects banking performance indicators, which are the capital adequacy index. And the use of two longitudinal data models (Panel Data Models), namely the common effect model and the fixed effects model, which must be taken to measure the impact of monetary and financial policy tools on the capital adequacy index and banking performance in order to advance the economic and banking sector.

The results of the standard aspect showed that there is a clear and noticeable effect of monetary and financial policies on the capital adequacy index ratio index, and there is a clear effect of monetary and financial policies on the capital adequacy index of banking performance for a sample of commercial banks in Iraq for the period 2005 - 2020.