Evaluating Banking Performance in Mobilizing Financial Resources: A Standard Study of a Sample of Private Iraqi Commercial Banks from 2013 to 2023
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Abstract
This study aims to analyze and evaluate the impact of banking performance indicators on financial resource mobilization in Iraqi private commercial banks during the period (2013–2023). The study adopts an analytical econometric approach using a multiple linear regression model to examine the relationship between total deposits as an indicator of financial resource mobilization and several banking performance indicators, including capital adequacy (CAR), profitability quality (PQ), asset quality (AQ), managerial efficiency (ME), and liquidity ratio. The analysis is based on annual data collected from a sample of Iraqi private commercial banks listed on the Iraq Stock Exchange.
The empirical results reveal that the model demonstrates a high explanatory power, with an R-squared value of 0.828, indicating that approximately 82.8% of the variation in total deposits can be explained by the independent variables included in the model. The findings also show statistically significant effects of capital adequacy, asset quality, and managerial efficiency on total deposits, with negative relationships. In contrast, profitability quality and liquidity ratio were found to be statistically insignificant in explaining variations in total deposits during the study period. Diagnostic tests further confirm the robustness of the model, including the normal distribution of residuals and the absence of heteroskedasticity.
The results highlight the importance of improving asset quality and enhancing managerial efficiency in order to strengthen banks’ ability to mobilize financial resources. The study also recommends achieving a balance between capital adequacy requirements and deposit mobilization capacity, as well as developing banking policies that enhance financial stability and strengthen depositor confidence in the banking sector.
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