Banking governance and banking risk reduction (a study of a sample of banks listed in the Iraq Stock Exchange)

Abstract

The research aimed to assess the extent of implementation of banking governance standards in Iraqi banks. During the years 2016-2023, the banking sector witnessed the issuance of numerous instructions, which Iraqi banks implemented. This commitment by banks to governance has reduced banking risks. The researcher concluded that Law No. (56) of 2004 granted the Central Bank of Iraq significant independence, enabling it to perform its duties efficiently and monitor banks in accordance with governance and international standards. Therefore, the sample of (10) banks achieved good results in reducing banking risks in terms of return on assets and market trading ratio. This indicates that commitment to governance has made progress in reducing banking risks in Iraq, and that banks are compliant with regulations and adherence to the instructions of the Central Bank of Iraq and international standards. Important recommendations include increasing field inspections, activating periodic field visits to banks, attracting international expertise, and cooperating with other central banks or international financial organizations to exchange expertise.