The influence of banking competition on solvency: An analytical study on a sample of commercial banks listed on the Iraqi Stock Exchange for the period (2005-2022)

Abstract

The research seeks to measure and analyze the impact of banking competition on solvency capacity through several financial indicators, namely (Herfindahl-Hirschman (HHI)) to measure banking competition. As for the solvency capacity, it was measured by the following indicators (the ratio of ownership rights to total deposits, the ratio of ownership rights to total assets, The ratio of ownership rights to total loans, the ratio of liabilities to total assets), and the research sample was chosen from among the commercial banks listed on the Iraq Stock Exchange, which includes ten banks: (Baghdad, Iraqi Commercial, Investment, Middle East, Iraqi National, Credit, Sumer Commercial, Gulf, Mosul, and Babylon Bank) for the period 2005 until 2022. The research used simple linear regression using the Smart PLS4 statistical program. The research reached a set of results, the most important of which is that there is a statistically significant effect of banking competition on the bank’s fulfillment capacity. In light of this, the research came out with a number of The most important recommendations are that commercial banks should follow policies and strategies that lead to improving the competitiveness of banks by diversifying bank deposits and not following a policy of concentration.