The impact of regulating bank credit risks on the value of commercial banks / An analytic study of the commercial banks listed on the Iraqi Stock Exchange for the period (2020-2015)

Abstract

This study aims to focus on the most important mechanisms and means used to confront the credit risks to which commercial banks are exposed and work to reduce or control them, by shedding light on how to manage and control bank credit risks and make investment and financial decisions in light of strict supervisory and administrative systems and methods, it ensures that banks clearly identify and classify these risks and thus take appropriate decisions that lead to better achieving their objectives, then we present the basic principles of credit risk management, which include a set of measures that must be taken by banks for the purpose of activating their new policy to codify or mitigate the severity of those risks, Credit risk is considered the main variable fundamental that affects both net income and the market value of property rights, in this study we analyse the impact of using bank credit risk mitigation by using the following methods which are (principles of good lending, market segmentation,and portfolio diversification credit, credit insurance, credit control and bank strategy), the study found that there is adirect, statistically significant relationship between capital risk management and the degree of banking safety, and that an increase in banking risk management by one unit leads to an increase in the degree of banking safety by (0.422), relying on the principles of good lending when granting credit, in addition to monitoring and periodic review of the credit portfolio before and after granting credit.