University of Kerbala
Faculty of Administration and Economics / University of Kerbala has discussed the M.A thesis which is entitled the role of strategic choice in relationship between banking competition and financial performance – an applied study on a sample of commercial banks listed on Iraq Stock Exchange of period 2005-2021.
The study, presented by Adhraa Muhammad Al-Saadi, aims at determining the extent of impact of banking competition on financial performance through strategic choice.
The study includes adopting published reports of Iraq Stock Exchange. The study applies Hirschman Index (HHI) to measure banking competition, including (concentration of deposits), financial performance indicators represented by profitability and liquidity (rate of return on assets and cash balance ratio), and strategic choice indicators represented by (capitalization, risks). credit, asset diversification, efficiency).
The thesis concludes that there is a weak competition among commercial banks in the study sample due to presence of large concentrations of deposits, which leads to a general perception of a lack of diversification in commercial banks, which may expose them to high risks that may lead to bankruptcy in the future.
The study recommends the necessity of providing modern methods and electronic technologies in private commercial banks to keep pace with tremendous developments, confront developments that may occur in banking environment, and encourage competition between banks.
