Examining the influence of credit risk indicators on the liquidity dynamics of Kurdistan International and Iraqi Islamic Bank for the period 2005-2022

Abstract

The banking sector play a significant role in the economy and in the financial system of any country. The aim of this research is to investigate the influence of credit risk indicators on the liquidity of two Iraqi banks including Kurdistan international bank and Iraqi Islamic bank by using data covering 18 years from 2005 to 2022. This research used SPSS V.26 program which were using correlations and regressions for analyzing data. The main result of the research indicated that the null hypothesis will be rejected and stating that there is a significant effect of the credit risk indicators (explanatory variables) on the liquidity dynamics (dependent variable) at the 0.05 significance level. Research recommended that highlighting the total credit quality of a bank's assets and liabilities is crucial as the profitability and net worth of a bank pivot not only on default risks, but also on the quality of its assets and liabilities.