The impact of credit risks on capital adequacy according to Basel (Ш) a comparative study of a sample of Iraqi private commercial banks

Abstract

    Banks face many diverse risks, which are considered dangerous phenomena that, if they occur, cause a waste of money and a threat to the development and development plans that are to be implemented in order to achieve the goals they have set, which prompted these banks and their management to find appropriate and quick solutions. Among these solutions was relying on management. Banking risks and their effective role in defining, identifying, measuring and monitoring risks and their attempt to control and be aware of the risks expected to occur for the purpose of encircling them and keeping them within acceptable limits, and under the supervision of senior management that works through audit procedures in accordance with the risk approach in accordance with Basel II decisions. Accordingly, the problem of the research is the limited use of indicators. Measuring banking risks by the external auditor when implementing audit procedures in the banking sector. The research generally aims to emphasize the importance and role of the external auditor in protecting the bank from banking risks and its continuity, and to shed light on the legislation and recommendations of the Basel Committee. One of the most important findings he reached was that the purpose of banking capital adequacy standards is to ensure that the bank maintains a minimum of its own funds to confront the risks to which it is exposed, in order to absorb any expected losses. The importance of the research appears through the process of coherence and application of international standards and modern concepts of the decisions of the International Basel Committee with current applications in local banks in banking risk management, as well as the research’s contribution to proposing a testing and auditing program on risk management in the banking sector