Commercial Banks
3 articles filed under this keyword.
The Impact Fair Value Accounting Implementation on the Quality of Financial Disclosure in Commercial Banks during Financial Crisis
Yaaqub Ahmed Hama Saeed, Sirwan Lutfalla Abdalla, Rizgar Ali Ahmed
This research investigates the application of fair value accounting in the banking sector and its influence on financial disclosure, particularly during periods of financial crisis. Fair value application in commercial banks is recognized as an influential tool for enhancing the financial statements, as it improves the transparency, ability to manage risk, and enabling effective financial decision making. To achieve the objectives and results of the study, (60) questionnaires were used as a research tool in the field study, where the questionnaire was formulated through a survey of the target groups to achieve the objectives of the study. Statistical program for social sciences (SPSS) was used to analyze the questionnaire data. The results showed that adopting a financial accounting system of the fair value model for accounting measurement and financial disclosure plays an important role, according to which it affects the quality of accounting information by maximizing the qualitative characteristics of this information, represented by relevance, reliability, comparability, and understandability. However, the results revealed, during financial crisis, no variance in the financial disclosure quality while applying fair value accounting. Since applying fair value accounting has positive direct effect on financial disclosure clarity, high report quality, transparency, and provision of reliable information for decision-making, the research recommends improvement in applying fair value accounting in financial banks especially during financial crisis.
Volume 10 · Issue 4 · December 2023Operational Risk Assessment and Its Role in Mitigating Damages in Commercial Banks: An Analytical Study of Expert Opinions in the Kurdistan Region - Iraq.
Shakhawan Babakr Hassan, Halmat Rasol Smiel
The aim of this study is to measure and analyze operational risks and identify the most important causes of operational risks in banks in the Kurdistan Region, based on the opinions of experts in this field. Operational risks affect all banking services and operations, such as internal systems, external events and human factors, which can cause significant losses for banks. Therefore, banks need to adopt evolutionary approaches to competition and risk management. To conduct the research, a selection of banks operating in the Kurdistan region was chosen as a case study area to identify the most significant causes of risks in banks. In order to achieve the aim of the study, the Analytic Hierarchy Process (AHP) methodology was used, relying on (SPSS.V.22) software as one of the standard economic methods for analyzing information obtained from a questionnaire administered to selected banks operating in the Kurdistan Region - Iraq. The study found a significant inverse relationship between operational risk assessment and the reduction of harm in commercial banks. This means that the higher the operational risk standards adopted, the lower the likelihood of injury in banks. Additionally, most banks have a plan for identifying and defining operational risks, and that many of the respondents confirmed the presence of operational risk definition and identified in the bank's approved plan for managing operational risks by the board of directors. This indicates that banks recognize the importance of identifying and managing operational risks as part of overall risk management. Data analytics and results should help increase this awareness and improve business risk management processes and procedures.
Volume 8 · Issue 4 · December 2021Analysis of the Impact of Non-Performing Loans on the Performance of Banking Work in Light of the Corona Pandemic (An Applied Study of A Sample of Banks Operating in the City of Erbil for the Year 2020)
Fria Ahmed Abdulkareem, Amer Abdulla Majid, Raqeeb Abdullah Omer, Nawzad Majeed Hasan, Mustafa Farooq Othman, Fakhraldin Bayz Ali
The research aims to know the impact of the spread of the Corona pandemic on the financial ability of borrowers and thus to identify their willingness to pay their financial obligations towards banks، and an attempt to present through this research appropriate proposals to address bad debts in banks operating in the city of Erbil. A default in loans affected commercial banks in the first place، because they are quick to profit due to the high interest rates in them، compared to banks in other fields، including agricultural، industrial، specialized، and Islamic. In addition to the interest of major merchants in the region to activate their commercial operations through commercial banks. The research concluded by presenting a number of proposals، including: The commercial banks should verify the actual verification of the borrower's ability to repay his loan، especially the verification of the existence of additional surplus income. As well as working to focus on disclosure and transparency between banks by providing information on customers who are unable to pay and limiting the volume of their dealings with banks، in order to avoid and analyze the phenomenon of financial default that banks are exposed to، especially under the circumstances of the Corona pandemic.