The Role of Applying Banking Digitisation in Reducing Credit Risks: An Analytical Study in a Selected Sample of Iraqi Commercial Banks for the Period from 2010 to 2021
DOI:
https://doi.org/10.31272/jae.i148.1430Keywords:
Banking Digitisation, Credit Risk, Non-Performing LoansAbstract
The current research dealt with two essential variables: banking digitisation as an independent variable, which is of great importance for processing, storing, and transferring data, as it works to improve customer relationships, generate more competitiveness, save costs, increase accuracy, and reduce banking risks, and credit risk as a dependent variable, which is the fundamental pillar in banking. Banks, which affect their work, and non-performing loans are one of their causes. Therefore, the research aimed to know the relationship between banking digitisation and credit risks by analysing the indicators of banking digitisation and their relationship to avoiding credit risks. The research problem focused on the central question: What role does it play? Banking digitisation in reducing bank credit risks? It was assumed that there are correlations, influences, and causal relationships between banking digitisation and credit risks in the research sample. The researchers followed the descriptive and analytical approach. The research community included a sample of Iraqi commercial banks, namely, and for a period lasting (12) years extending from (2010 - 2021), as reliance was placed on data from the annual report of each bank, and data provided by the Central Bank of Iraq, , the research produced a set of results, most notably the existence of a link and impact between banking digitisation and credit risk in the research sample, as well as the existence of a causal relationship between these variables and is specific.
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