The extent to which Basel Standards can be applied to Iraqi private commercial banks for the period (2010-2020

Abstract

    Capital adequacy is one of the most important issues of concern to the management of banks and the local and international financial and monetary control and supervisory bodies because of the great importance of this issue in the management and protection of the bank.

Therefore, the study aimed mainly at the issue of the role of Basel Ш Committee requirements in limiting or reducing the credit risks of the same study, through the use of capital adequacy measurement ratios, and to achieve this purpose the study was applied to a sample of banks consisting of ten banks listed in the market Iraq Securities Exchange for the period from (2010-2020), and a set of financial and statistical measures were used, represented by financial equations, the statistical program (SPSS) and the use of the (Regression), and the study reached a set of conclusions, the most important of which are:

1- The capital adequacy rates in private banks are much more than the minimum capital adequacy ratio and in all the measures in force, whether mentioned in the Basel Agreement (Ш) 10.5%, or the Iraqi Banking Law or the instructions of the Central Bank of Iraq (12%), and one is attributed The reasons for this increase are the steady annual increases in banks' capital, which constitute the numerator of the index, in contrast to the slowdown in the growth of risk-weighted banking assets compared to short-term investments.

2- From a review of the scientific literature on the subject, we note that the capital adequacy standard of the Basel Committee has been applied in different environments in Western countries, America, Japan, and Arab countries, and accordingly, this standard is characterized by the comprehensiveness of application.

The researcher recommended a number of recommendations, the most important of which are: -

1 - Providing the Central Bank of Iraq to commercial banks with the decisions issued by the Basel Committee regarding developments on the draft new standards, and urging them to express their opinions.

2 - Coordinating and holding seminars and lectures for specialists in this field from the banking sector and bank employees to familiarize them with the new amendments to Basel (Ш).