The impact of bank credit on capital adequacy according to Basel III An applied study on a sample of commercial banks listed on the Iraqi Stock Exchange 2010-2020

Abstract

This research aims to clarify the role of bank credit and its impact on capital adequacy by studying the relationship between credit and capital adequacy according to Basel III. The importance of this research stems from studying bank credit in order to reduce default on bank loans and thus prevent the bank from bankruptcy by reducing It is one of the most important risks to which banks are exposed and the need to hedge against it. The researcher conducted an applied study in a sample of four commercial banks listed on the Iraq Stock Exchange for the period (2010-2020). The research concluded that bank credit leads to improving capital adequacy in accordance with Basel III requirements. When profits are achieved, it leads to an increase in capital. Better money and compliance with international standards through credit policies, which enhances the alignment of commercial banks with those requirements. The research recommended the need to develop appropriate and appropriate policies and strategies to avoid crises and reduce credit risks, especially negative risks, find appropriate ways to deal with these risks, and develop appropriate policies and strategies.