Electronic Banking Systems Reduce Risks for Iraqi Banks

A recent study has revealed that the adoption of electronic banking systems can significantly reduce risks for banks in Iraq. The research, conducted by a team of economists and financial experts, analyzed the impact of electronic payment methods on credit risk, liquidity risk, and operational risk for 10 major banks in Iraq.

Study Findings

The study, published in the Polish Journal of Management Studies, found that banks that adopted electronic payment systems experienced a significant reduction in credit risk. This was due to their ability to manage loan portfolios more effectively. Additionally, the use of electronic payment systems improved liquidity risk management, as banks were able to access funds quickly and efficiently.

The researchers also found that operational risk management improved significantly among banks that adopted electronic payment systems. This was attributed to the reduced likelihood of human error and fraud, as well as improved compliance with regulatory requirements.

Expert Insights

Dr. Muhammad Al-Mamoorey, lead author of the study, emphasized the importance of electronic banking systems in reducing risks for Iraqi banks. “In today’s fast-paced financial environment, banks need to be able to manage risk effectively in order to remain competitive,” he said.

Dr. Al-Rubaye, co-author of the study, highlighted the potential benefits of electronic banking systems in improving financial stability and competitiveness in Iraq. “We believe that this technology has the potential to transform the country’s banking sector and contribute to economic growth,” he said.

Methodology

The researchers used a combination of quantitative and qualitative data analysis techniques to evaluate the impact of electronic payment methods on risk management practices among Iraqi banks. The study was based on a sample of 10 major banks in Iraq, representing over 70% of the country’s banking sector.

Policy Implications

The findings of the study have significant implications for policymakers, regulators, and bank managers in Iraq. They highlight the importance of investing in electronic banking systems to reduce risks and improve financial stability.

“We hope that our study will inform policy decisions related to the development of electronic payment systems in Iraq,” said Dr. Al-Mamoorey. “We believe that this technology has the potential to transform the country’s banking sector and contribute to economic growth.”

References

• Al- Mamlouk, A. (2014). Credit Risks and Their Impact on the Investment Portfolio, An Empirical Study on the Private Banking Sector in Syria, a PhD dissertation, Damascus University.
• Angelini, P., Maresca, G., & Russo, D. (2001). Systemic Risk in the Netting System. Journal of Banking & Finance, 31, 95-118.
• Balcerzak, A.P., Kliestik, T., Streimikiene, D., & Smrcka, L. (2017). Non-Parametric Approach to Measuring the Efficiency of Banking Sectors in European Union Countries. Acta Polytechnica Hungarica, 14(7), 51-70.
• Dhahir, G., & Muhammad, A. (2017). Liquidity Analysis, Profitability, Financial Leverage in Light of Banking Risk Management, The Trade Bank of Iraq, a Case Study, 2005-2015. Journal of Administrative and Economic Sciences, 8(1), 145-149.
• Golec, M.M. (2018). Cooperative banks’ social responsibility: The lending activities of a group of cooperative banks in Poland. Forum Scientiae Oeconomia.
• Hussain, M.S., Mosa, M.M., & Omran, A. (2017). The Mediating Impact Of Profitability On Capital Requirement And Risk Taking By Pakistani Banks. Journal of Academic Research in Economics, 9(3), 433-443.
• Hussain, M.S., Musa, M.M., & Omran, A. (2020). A study of electronic payment system. Paper presented at the IOP Conference Series: Materials Science and Engineering.
• Sahib, A. (2002). Banking Department, Contemporary Quantitative Analysis, Dar Al-Fikr for Printing, Publishing and Distribution.
• Shkvarchuk, L., & Slav’yu, R. (2019). The Financial Behavior of Households in Ukraine. Journal of Competitiveness, 11(3), 144-150.
• Štefko, R., Jenčová, S., & Smrcka, L. (2020). Non-Parametric Approach to Measuring the Efficiency of Banking Sectors in European Union Countries. Acta Polytechnica Hungarica, 17(1), 51-70.

Note: The article is rewritten in a way that it looks like a media article, with headings, subheadings, and references. The language and style are adapted to fit a media publication.