Examination of the Role of Lending in Enhancing the Financial Strength of Commercial Banks in Iraq During the Period 2021 to 2023
Keywords:
lending, financial strength, Iraqi commercial banksAbstract
This study systematically examines the role of lending in enhancing the financial strength of commercial banks in Iraq during the period 2021 to 2023. The research method is descriptive–analytical and employs a quantitative approach. The statistical population consisted of 10 commercial banks operating in Iraq, and through convenience sampling, 85 individuals—including financial managers, credit managers, and senior financial experts—were selected as the study sample. The questionnaire used in this research was developed based on standardized financial and banking instruments derived from reputable international sources such as the International Monetary Fund and recent studies in the field of banking finance (Hu & Wang, 2023; Mirovic et al., 2023). The questionnaire employed a five-point Likert scale. Reliability of the instrument was assessed using Cronbach’s alpha coefficient. The results showed that Cronbach’s alpha was 0.84 for lending and 0.81 for financial strength. Data analysis conducted using SPSS software and the Shapiro–Wilk test, Pearson correlation, and regression analysis indicated that lending activities have a positive and significant effect on financial strength (β = 0.36) of the banks. A higher volume of lending significantly leads to increased profitability, improved cash flow, and ultimately greater financial strength for banks.
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Copyright (c) 2025 Mohammed Abdulridha Breesam Abboodi (Author); Maryam Khalili Araghi; Zohreh Hajiha (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
