Examining of Some of Factors Affecting Financial Stability in A Sample of Islamic Banks in Iraq For the Period 2018-2022

Abstract

The current research aims to identify some of the factors affecting financial stability in a sample of Iraqi Islamic banks for the period from 2018 to 2022. The research relied on data from the annual financial reports of the banks under study, which were accessed through their official websites. The research sample included five Iraqi Islamic banks, represented by the Bank the Islamic World for Investment and Finance, the International Islamic Bank, Al-Ansari Islamic Bank for Investment and Finance, Al-Janoob Islamic Bank for Investment and Finance, and Al Qabidh Islamic Bank for Finance and Investment. It included the independent variables (return on deposits, debt ratio, cost-to-income ratio, and deposit employment ratio) and the dependent indicator, represented by bank stability, as calculated through the Z-score. Relying on applying the statistical program (SPSS V. 26) to access and discuss the results. The research reached a set of conclusions, the most important of which is that there is a statistically significant correlation between the factors affecting banking stability in Iraqi Islamic banks. Among the important recommendations, the investigated banks must work to enhance and maintain financial stability to obtain more profits by expanding the scope of the banking services base and with flexible facilities.