Credit Risk And Their Impact On Bank Efficiency

Abstract

This study aims to reveal one of the most important risks faced by commercial banks, especially the Iraqi banks under study during the period (2010-2019) resulting from the operations of granting bank credit, which is known as credit risk and its direct impact on the work of the banks under study and their financial performance, as the research problem lies in Statement of the extent of the impact of these risks on the efficiency of the research sample banks through the study and analysis of indicators of credit risk and banking efficiency, as two commercial banks were selected, namely the Commercial Bank of Baghdad and the Commercial Bank of Iraq, and the most important problems that the two banks suffer from as a result of credit risk and its effects on banking returns, which It directly affects the efficiency, as the variables indicators were analyzed and tested using the F, P-value tests and the impact statement through the coefficient of determination R2 using ANOVA, and the research concluded that there is a significant positive effect of credit risk on banking efficiency, on the basis of which the alternative hypothesis was accepted, The research also reached a number of recommendations, the most important of which is the development of correct credit policies based on practical and technical foundations to ensure that banks are not exposed to the same Searching for defaults.