Original article | BABIR International Journal for Human Sciences 2020, Vol. 2(2) 117-134
Sajad Sadek Sadaa & Youssef Abdullah Abdul
pp. 117 - 134 | DOI: https://doi.org/10.29329/babir.2020.244.8 | Manu. Number: MANU-2005-10-0002
Published online: May 10, 2020 | Number of Views: 17 | Number of Download: 385
In this research, we are trying to explain the new regulatory framework for Iraqi banks in the event of the implementation of the decisions of the Basel 3 agreement, especially since Iraq began with economic openness, financial liberalization, and a shift towards a market economy and entry into all international agreements, especially in the financial and banking field, so Basel 3 agreement was formed by the Basel Committee for Banking Supervision in order to Reducing exposure to banking risks to which banking and financial systems are exposed in all countries of the world. The research problem came from the limited commitment of Iraqi banks to the directions of international financial organizations, including the Basel 3 agreement, in order to develop their financial and banking performance. The research hypothesis was that there is a possibility to implement the (Basel 3) agreement in Iraqi banks, including the National Bank of Iraq, and that its commitment to implementation will lead to positive results in banking activity.
The research reached through the use of a descriptive analysis method of the financial statements of the National Bank of Iraq that it did not apply the (Basel 3) agreement, and that the commitment to the specific adequacy ratio will reduce the risks, while the effect of adequacy in liquidity will be positive, but it will have a negative impact on employment, financial leverage and profitability due to the disruption of part a lot of the bank’s money without investing it and achieving the desired profitability from it.
Keywords: Basel3, Iraqi banks, Banking and finance, Banking Control, Liquidity Indicators.
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