Assessment of bank liquidity using financial indicators - an analytical study in the Middle East Bank for the period of time (2005-2019)

Abstract

Liquidity is one of the most prominent goals that commercial banks seek to achieve, which faces many difficulties that may lead to falling into a liquidity crisis, and thus finds itself in a state of inability to meet its obligations, and that the high liquidity in banks must be invested and employed. The current study aimed to identify the liquidity volume of the Middle East Bank and analyze its indicators.

The research attempts to analyze the reality of liquidity in the Middle East Bank and evaluate its indicators based on the premise that the development of banking activity in the Middle East Bank requires the use of financial indicators in evaluating the bank's liquidity to indicate weaknesses and strengths. The research sample was represented by choosing the Middle East Bank listed in the Iraqi Stock Exchange within a time series of fifteen years (2005-2019).

The research relied on the analytical approach and reached a set of conclusions, most notably the presence of disparity and fluctuation in the banking liquidity of the Middle East Bank, ranging between rising and decline as a result of being affected by a number of internal and external factors. Excess liquidity in a way that reduces the liquidity ratios of the Middle East Bank.