Analysis Of Banking Risk And Its Reflection On Credit ability Using The Altman Model

Abstract

The objective of the study is to identify the importance of banking risk analysis, which represents potential losses to banks, which are adopted as a tool to measure and determine the creditability of the bank. As we know, the ultimate goal of the banks is to increase profitability and reduce the loss that can be exposed, The study examined the concept of banking risk in creditability and the importance of the role of credit in achieving the objectives of the bank in the long term. The study adopted in its application on a set of reports and financial statements published for two banks from the banks listed in the market of Iraq to Ora The study used a range of financial and statistical means to achieve its objectives. The study was used to verify the normal distribution of data (Kolmogorov-Smirnov) and found that it was subject to normal distribution. The study also used correlation and regression analysis of study variables and hypothesis testing, Of the statistical methods such as Pearson correlation coefficient as well as the use of simple linear regression by using the application of the statistical program ready SPSS The study reached a set of conclusions, the most important of which is the absence of a relationship of influence and correlation of semantic Statistically significant between the banking and credit risk and vulnerability. The study presented a number of recommendations, the most important of which is the importance of the management of banks to use modern standards such as Altman model in measuring banking risk