Analysis of financial variables for liquidity risks in Iraqi commercial banks for the period (2010-2020)

Abstract

This research is concerned with analyzing liquidity risk indicators in Iraqi commercial banks for the period (2010-2020), as liquidity risks arise from the bank’s inability to provide financial needs, that is, its inability to pay short-term obligations. A group of financial indicators were analyzed, including total assets. Deposits, cash credit, and doubtful debts, in addition to the total paid-up capital, and some liquidity risk indicators were used, including the ratio (the ratio of total loans to total assets, the ratio of total loans to total deposits, and the ratio of liquid assets to total assets), and the research started from the hypothesis that commercial banks suffer from high indicators of liquidity risks, which negatively affects their ability to fulfill their obligations. The research reached a set of conclusions, the most important of which is that the main goal of analyzing banking risks is to find ways to reduce their negative effects in order to avoid them. As the two researchers noted, there is an increase in risks Liquidity in Iraqi commercial banks through the indicators used in the study. The study recommended the need for the bank to maintain liquid assets in a manner that is compatible with sudden requests to withdraw liquidity, regardless of their size.