Assessing the Impact of Liquidity on Profit Stability in Iraqi Banks

Omer Abdulmelik Abdulhameed

doi:10.56201/ijbfr.vol.12.no4.2026.pg189.209

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Assessing the Impact of Liquidity on Profit Stability in Iraqi Banks

Omer Abdulmelik Abdulhameed

Abstract

The goal of this research is to see how liquidity affects the stability of bank profits. The study looked at five banks that are listed on the Iraq Stock Exchange from 2016 to 2021. It used numbers to analyze the banks liquidity how profitable they are and how stable their profits are, looking at things like how money they have available and the loan-to-deposit ratio. The research also talked about how the banks did in terms of making money and being stable using statistical tests to see how these things are related. The results showed that banks with a lot of liquidity tend to make money. This means that having enough money available and using deposits wisely are important for a bank to be profitable. How well a bank is. The quality of its assets also matters a lot. The research suggests that banks should try to find a balance between being financially safe and making money and be careful about lending to people who might not pay them back. Iraqi private banks should try to find this balance to be successful and be careful with their liquidity to make sure they are profitable and stable. Iraqi banks need to manage their liquidity to be profitable and Iraqi banks need to be careful, with their money to be stable.

Keywords

LiquidityProfit StabilityROAROE.

References

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Assessing the Impact of Liquidity on Profit Stability in Iraqi Banks

Abstract

Keywords

References

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