Market risk management and its impact on financial performance in commercial banks

DOI:

https://doi.org/10.36371/port.2021.4.4

Authors

  • Amena. A Halbous uruk

The research aims to study the impact of market risks on the financial performance of
private commercial banks, targeting a sample of Iraqi private banks for the period from 2004-2018. The
financial performance was measured using the camel’s model, while the market risk was measured
through the index of investment in securities Current assets. The cross-sectional data was adopted for the
purpose of including the data in the simple regression model that was adopted to study the effect of the
independent variable on the dependent variable. The results of the research indicated that there was a
statistically significant effect of market risks on the financial performance of private commercial banks,
which amounted to 25%.

Keywords:

financial performance, market risk, camels model, stock investment

[1] Acharya, V. V. (2003). Is the International Convergence of Capital Adequacy Regulation Desirable? Journal of

[2] Finance. Blackwell Publishing Ltd. https://doi.org/10.1046/j.1540-6261.2003.00621.x

[3] Alenazi, S. (2016). The Role of Corporate Governance in Enhancing Performance and Reducing Corporate Risk: The

[4] Case of the UK Banking Sector. Durham University. Retrieved from http://etheses.dur.ac.uk/12005/

[5] Von Stackelberg, H. (2011). Market structure and equilibrium. Market Structure and Equilibrium (pp. 1–134).

[6] Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-12586-7

[7] Georgios, K., & Elvis, K. (2019). Bank Value using Camels Model Evidence from Balkans Banking

[8] System. International Research Journal of Finance and Economics ISSN, (176), 182–195.

[9] Salem, R. A. (2013). Risk management for Islamic banks. Risk Management for Islamic Banks (pp. 1–232). Edinburgh

[10] University Press. https://doi.org/10.1002/9781119161059.ch23

[11] Acharya, V. V. (2003). Is the International Convergence of Capital Adequacy Regulation Desirable? Journal of

[12] Finance. Blackwell Publishing Ltd. https://doi.org/10.1046/j.1540-6261.2003.00621.x

[13] Alenazi, S. (2016). The Role of Corporate Governance in Enhancing Performance and Reducing Corporate Risk: The

[14] Case of the UK Banking Sector. Durham University. Retrieved from http://etheses.dur.ac.uk/12005/

[15] Von Stackelberg, H. (2011). Market structure and equilibrium. Market Structure and Equilibrium (pp. 1–134).

[16] Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-642-12586-7

[17] Georgios, K., & Elvis, K. (2019). Bank Value using Camels Model Evidence from Balkans Banking

[18] System. International Research Journal of Finance and Economics ISSN, (176), 182–195.

[19] Salem, R. A. (2013). Risk management for Islamic banks. Risk Management for Islamic Banks (pp. 1–232). Edinburgh

[20] University Press. https://doi.org/10.1002/9781119161059.ch23

[21] Ahmed, L. (2015). The Effect of Foreign Exchange Exposure on the Financial Performance of Commercial Banks in

[22] Kenya. International Journal of Scientific and Research Publications, 5(11), 115–120.

[23] Hunjra, A. I., Mehmood, A., Nguyen, H. P., & Tayachi, T. (2020). Do firm-specific risks affect bank

[24] performance? International Journal of Emerging Markets. https://doi.org/10.1108/IJOEM-04-2020-0329

[25] Effect of Market Risks on the Financial Performance of Firms in Nigeria. (2020). European Journal of Accounting,

[26] Auditing and Finance Research, 8(6), 28–45. https://doi.org/10.37745/ejaafr/vol8.no6.pp28-45.2020

[27] Jorion, P. (2003). Financial Risk Manager Handbook. Wiley Finance (p. 708 p.). Retrieved from

[28] http://books.google.com/books.

[29] Resti, A., & Sironi, A. (2007). Risk Management and Shareholders’ Value in Banking: From risk measurement

[30] models to capital allocation policies. Wiley Finance (p. 782). Retrieved from

[31] http://scholar.google.com/scholar?hl=en&btnG=Search&q=intitle:No+Title#0

[32] Malihe Rostami, & Correspondence Malihe Rostami. (2015). Determination of Camels model on bank’s

[33] performance. International Journal of Multidisciplinary Research and Development Volume:2, 2(10), 652–664.

[34] Scott, H. S. (2005). Capital adequacy beyond Basel: Banking, securities, and insurance. Oxford University Press.

[35] Scott, H. S. (2005). Capital Adequacy Beyond Basel: Banking, Securities, and Insurance. Capital Adequacy beyond

[36] Basel: Banking, Securities, and Insurance (pp. 1–354). Oxford University Press.

[37] https://doi.org/10.1093/acprof:oso/9780195169713.001.0001

[38] Weleh Zagherd, M. K., & Barghi, M. (2017). Performance Evaluation of Iranian Banking Industry through CAMELS

[39] Framework. Journal of Accounting & Marketing, 06(02). https://doi.org/10.4172/2168-9601.1000228

Halbous, A. A. (2022). Market risk management and its impact on financial performance in commercial banks. Journal Port Science Research, 4(4), 269–278. https://doi.org/10.36371/port.2021.4.4

Downloads

Download data is not yet available.