Evaluation of the efficiency of bank liquidity management in the Commercial Bank of Baghdad using the data envelope analysis method for the period 2010-2019

Abstract

Efficient banking liquidity management in the banking system in general and commercial banks, in particular, contributes to reducing the possibility of exposure to banking risks that commercial banks may be exposed to on an ongoing basis, represented by their inability to fulfill their obligations on the due date. Liquidity risks are considered one of the most difficult risks facing the banking system, so the research aims to identify the relationship between banking liquidity indicators and banking liquidity risk indicators through the data envelope analysis program to measure and analyze the efficiency of the Iraqi banking system, considering the first as inputs and the second as outputs in the process of evaluating the efficiency of liquidity management for the study sample.

The problem of the study is that the Iraqi banking system suffers from instability in the economic, political, and security environment, severe fluctuations, and various shocks, which cast a shadow on the uncertainty of the future, which makes pessimism prevail among the owners of commercial banks, especially private ones. Liquidity is an important factor for the economy to be important and in high security.