Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Testing the Effect of Financial Soundness Indicators of Banks in Bank Safety

Author(s): Jinan Ismail Salih

The main objective of the research is to test the effect of the financial soundness indicators of banks in the bank safety of a sample of Iraqi banks for the period from 2015 to 2020. The research data was obtained through the Iraq Stock Exchange website and the official websites of banks. The financial soundness of banks was measured through their indicators (capital adequacy indicator, liquidity indicator, asset quality indicator and profitability indicator), as well as bank safety was measured through one indicator consisting of (equity to total assets), and this was done by using some financial equations and statistical methods, which were analyzed using the program (SPSS v.22). The results of the research showed that the financial soundness indicators of banks negatively and insignificantly affect the bank safety of Iraqi banks, the research sample.

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