The Role of Loans in Achieving the Financial Stability of Commercial Banks
Keywords:
Loans, Financial Stability, Iraqi Commercial BanksAbstract
The present study was conducted to examine the role of loans in achieving the financial stability of commercial banks. In terms of purpose, this research is an applied study; in terms of nature, it is considered quantitative; and based on the method of implementation, it falls within the category of correlational research. The statistical population of the study consisted of 85 financial managers, credit managers, and senior financial experts from 10 active commercial banks in the Republic of Iraq (including state-owned banks, domestic private banks, and foreign banks), who were selected through purposive sampling based on operational accessibility, level of organizational responsibility, and degree of professional expertise. The data collection method was both field-based and documentary. The research instrument was a 10-item questionnaire using a 5-point Likert scale, with a content validity index of 0.91 and a reliability coefficient exceeding 0.70. Data analysis was conducted at both descriptive and inferential levels using regression analysis in SPSS software. The results indicated that lending has a positive and statistically significant effect on banks’ financial stability (β = 0.28). Based on the conducted analyses, the effect of lending on financial stability occurs primarily indirectly and through increased profitability and improvement in the capital base.
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Copyright (c) 2026 Mohammed Abdulridha Breesam Abboodi (Author); Maryam Khalili Araghi; Zohreh Hajiha (Author)
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