Determinants of Banks Profitability in Kurdistan Region from 2009-2020: Case Study of CIHAN Investment and Finance Bank
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Abstract
This study investigates the profitability of banks, which is affected by internal factors. It aims to determine the relationship between bank characteristics and bank performance in the Kurdistan Region of Iraq. Secondary data was used from the financial statements of CIHAN Bank for the period 2009-2020. The independent variables were bank size, liquidity, capital adequacy, and asset management, while the bank's profitability was used as the dependent variable. Understanding the characteristics of the bank is essential for managing its financial performance and contributes to the economic growth of a country. Pearson correlation tests assessed the relationship between the independent variables and the dependent variable of bank profitability. The Statistical Package for the Social Sciences (SPSS Ver.20) was used for data analysis and presentation. The results indicated that three independent variables had a positive relationship with the bank's profitability, while asset management did not. In the model, the null hypothesis was rejected for all variables except asset management. The study recommended that an effective financial system is vital for the development of a country's economy, as disruptions or failures in the system can lead to economic hardships.
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