Financial flexibility and its impact on banking stability Analytical study in a sample of banks registered in the Iraqi Stock Exchange For the periodz (2012-2021)

Abstract

The study sought to know the effect between financial flexibility, which was measured by ratios (net cash flow, financial leverage, liquidity), on banking stability, measured by the Z-score index) through a set of questions that inquire about the nature of the effect between variables in the banks of the study sample, through which The study hypotheses were formulated to determine the impact. In the applied aspect, the study relied on data from the sample banks of the study (National Bank of Iraq, United Investment Bank, Investment Bank, Credit Bank of Iraq, Commercial Bank of Iraq, Gulf Commercial Bank, Middle East Bank, Mosul Bank for Development and Investment Bank of Baghdad, Sumer Bank, which are listed on the Iraq Stock Exchange, as the time series extended for (10) years (2012-2021), and to determine the nature of the effect between the variables of the study, the study relied on (Analysis Data Panel) using the program Eviews₁₂ to analyze the data and test Hypotheses In addition to the use of Excel program, the study reached to a set of conclusions, the most important of which is the existence of an impact of flexibility on banking stability. The study’s recommendations included the need for banks to enhance financial flexibility to achieve banking stability.