The effect of market risks on capital adequacy according to the requirements of Basel (III) An analytical study of Mosul Bank for Development and Investment for the

Abstract

The study aims to identify the importance of market risk, which represents the amount of potential loss that banks may be exposed to, and which has become a tool for measuring and managing control over the market risk facing the bank, since the ultimate goal of banks is to increase profitability and reduce losses to which they are exposed. This study has been linked to the bank’s capital adequacy in accordance with the requirements of the Basel Committee (III). The study relied on a set of reports and financial statements for the study sample banks listed in the Iraq Stock Exchange for the period (2008-2020). The study included the Mosul Bank for Development and Investment during a time series that spanned the 13th A set of financial equations has been used, and the study reached a set of conclusions, the most important of which is the existence of an effect between market risks in the Basel Committee (III), and that capital adequacy rates in private Iraqi banks exceed the minimum established in the Basel Committee Agreement (III), which is (%) 10.5) and even more than the instructions of the Central Bank of Iraq, amounting to (12%), and the study presented a set of recommendations, the most important of which is the need for bank management to study market risks because it may expose the bank to large uncontrollable losses and the extent of the impact of these risks on the solvency of capital banker