THE EFFECTS OF THE DIVERSITY OF BANKING SERVICES ON BANK PERFORMANCE-A CASE OF THE IRAQI BANKING SYSTEM
DOI:
https://doi.org/10.61841/h7g7py27Keywords:
Diversification, bank diversity, bank performance, credit risk,, credit portfolioAbstract
--This paper examines the effect of diversification on the performance of various banks in Iraq. Previous studies suggest that banks which are less diverse in terms of services offered and clientele are monotonous and generate less revenue. Further, the performance of the bank is measured by its ability to meet its goals, increase its profit margin and build a good capital portfolio. This research deployed qualitative and quantitative approaches to collect and analyze data from 19 participants in 7 companies within the Kurdish region of Iraq. The eligibility criteria for selecting the participants was that those who were fully aware of the functionality of the banks were selected. The findings showed that the diversity of services offered or clients influence the performance of the bank. In conclusion, banks which offer a variety of services to several investments are poised to perform in the banking industry. Employees also play a vital role in strategies such as the evaluation of clients and sectors with lower credit risk and higher returns.
Downloads
References
1. Asif, R., & Akhter, W. (2019). Exploring the influence of revenue diversification on financial performance in the banking industry. Qualitative Research in Financial Markets.
2. Amir, A. (2016). Credit risk management in the banking industry: Calculating loan portfolio risk- adjusted returning Iranian banking industry.
3. Al-Khero, I. M. M., Janudin, S. E. B., Abdelhakeem, A., & Ahmed, K. (2019). The Impact of Financial Engineering on the Financial Performance in Iraqi Banks. Global Journal of Accounting and Finance, 2, 33-46.
4. Brighi, P., & Venturelli, V. (2016). How functional and geographic diversification affect bank profitability during the crisis. Finance Research Letters, 16, 1-10.
5. Brahmana, R., Kontesa, M., & Gilbert, R. E. (2018). Income diversification and bank performance: evidence from Malaysian banks. Economics Bulletin, 38(2), 799-809.
6. Chai, B. B. H., Tan, P. S., & Goh, T. S. (2016). Banking services that influence bank performance. Procedia-Social and Behavioral Sciences, 224, 401-407.
7. Hamdi, H., Hakimi, A., & Zaghdoudi, K. (2017). Diversification, bank performance and risk: have Tunisian banks adopted the new business model? Financial innovation, 3(1), 22.
8. Hashem, S. D. (2019). The Main Challenges Facing the Iraq Banks. Indian Journal of Public Health Research & Development, 10(4), 525-528.
9. Hadian, M. (2016). Islamic Finance and Macroprudential Policy: The Case of Iranian Banking System. In Macroprudential regulation and policy for the Islamic Financial Industry (pp. 193-209). Springer, Cham.
10. Khalili, K., & Khalilpour, K. (2016). Customer classification in the banking system of Iran based on the credit risk model using multi-criteria decision-making models. Accounting, 2(4), 177-184.
11. Mohsen, M. (2016). Comparing Between Commercial and Investment Banking: A Case Study from Iraq. Jurnal Ekonomi dan Studi Pembangunan, 8(2), 204-213.
12. Sissy, A. M., Amidu, M., & Abor, J. Y. (2017). The effects of revenue diversification and cross border banking on the risk and return of banks in Africa. Research in International
13. Saghi-Zedek, N. (2016). Product diversification and bank performance: does ownership structure matter? Journal of Banking & Finance, 71, 154-167. Business and Finance, 40, 1-18.
14. Raeia, R., Farhangzadehb, B., Safizadehb, M., & Raeic, F. (2016). Study of the Relationship between Credit Diversification Strategy and BanNsГ Credit RisN and Return: Evidence from Tehran Stock Exchange (TSE). Procedia Economics and Finance, 36, 62-69.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
