Using financial architecture to enhance financial well-being: An analytical study of a sample of banks listed on the Iraq Stock Exchange
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Financial architecture is one of the contemporary topics that contribute to increasing the value of banks in the financial markets because they take strategic decisions regarding the structure of ownership, financing, and good governance to confront future crises. However, the feeling of anxiety and psychological and financial pressure of banks when making their choices related to their basic expenses leads to risky financial behaviors such as excessive debt, so they tend to resort to... Negative perceptions, which cause financial difficulties, can increase borrowing costs, and the possibility of bankruptcy. The study aims to know the extent to which financial architecture is used to enhance financial well-being. To achieve this goal, the study relied on the (analytical and standard) approach. Using (E-views 12) and (STATA 14) programs, as well as using historical financial data for the period between 2010 and 2017. Relying on the data issued by the financial reports of (8) private banks listed on the Iraqi Stock Exchange and using financial architecture metrics to measure the bank’s effectiveness and the financial well-being index. The most important finding of the current study is that there is a positive impact of financial architecture to enhance the financial well-being of the banks in the study sample. But the National Bank Al-Iraqi Bank does not have a suitable financial architecture compared to other banks during the study period as a result of the lack of interest in ownership and financing structures, and the bank’s weak financial experience. The study presented several recommendations, including that the management of the National Bank of Iraq must pay attention to the requirements of the financial architecture and achieve the entire system by achieving consensus between the members of the Board of Directors and the Executive Director and not to be isolated in decisions that only achieve personal interest. And to look at the interests of minority shareholders in the same way that their own interests are looked at.
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