Inertia of the Capital Structure and its impact on the Credit Capacity
DOI:
https://doi.org/10.36322/jksc.v1i74(A).17653Keywords:
Capital structure, creditworthiness, Iraqi banksAbstract
The study aims to shed light on one of the main important topics in banking activity, which is the capital structure as the main driver for the work of banks and consequently the failure to provide banking services correctly, and as a result, it negatively affects the credit capacity of banks. The study adopted the annual reports of banks published on the Iraq Stock Exchange. The financial period (2006-2020), which included 10 commercial banks from the original (24), and the cross-sectional data analysis method (Panel Data) was used by (EViews v.12) and (Excel) program.
The study reached a set of conclusions, the most important of which is the existence of a significant impact relationship between the rigidity of the capital structure and the ratio of total loans and advances to deposits. The recommendations of the study came to the need for banks to market the services provided to attract deposits as well as adhere to the laws and regulations issued by the monetary authorities and rely on a variety of sources to finance its capital structure.
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