Financial risks and their impact on the rate of return on assets (An analytical study of a sample of the Iraqi private banking sector)

Abstract

This research aims to know the impact of financial risks (credit risk, liquidity risk, capital risk) on the rate of return on assets for private commercial banks. 10) Banks belonging to a community consisting of (43) banks for the period from (2011) to (2020), The independent variable of financial risk (credit risk, liquidity risk and capital risk) was measured using the financial ratios of credit risk (total loans / total assets) and liquidity risk (liquid assets / total assets) as well as capital risks (share price / earnings per share). One), as for the dependent variable, it was measured by dividing (net profit after taxes / total assets) and after addressing the theoretical side of the research, the research presented the applied side in order to reach a set of conclusions, and by relying on multiple linear regression, the research found an effect Significantly significant indicators of financial risk in the return on assets, The researcher recommended a number of recommendations, including the research sample banks, the conscious use of financial risk indicators, which include credit risk, liquidity risk and capital risk by analyzing market trends and knowing interest rate changes as well as knowing the behavior and tastes of customers and the extent to which they avoid fluctuations in returns that are likely to be exposed It has the bank and benefit from this analysis in order to improve the work of the bank and use it for its benefit.