The role of marginal capital adequacy in reducing risks and enhancing banking performance an analytical study of a sample of commercial banks in Iraq

Abstract

Capital adequacy and risk management in banks is one of the most important topics that economists have given great attention to, both economically and from a banking perspective, following the crisis that struck the global economy and led to the bankruptcy of several major banks. This research aims to analyze the relationship between capital, risk management, and banking performance, taking into account the challenges and special circumstances facing Iraqi banks. Given the importance of the topic at the local and international levels, international regulatory bodies have set standards and criteria for the adequacy of commercial banks' capital, the risks they face, the magnitude of these risks on banking sector indicators, and the measurement of their impact on capital and risk-weighted assets. Given the inadequacy of some provisions of international standards with the nature of private businesses in Iraq due to the underdevelopment of the banking sector in Iraq, this research attempts to shed light on the impact of capital adequacy on commercial banks.