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The problem of non-performing loans in Iraqi banks: An econometric study of the impact of economic and institutional factors on asset quality

Author

Listed:
  • Hiba Yousif Taha

    (Al-Furat Al-Awsat Technical University)

  • Husam Abbas Ali

    (General Directorate of Education of Muthanna, Iraq)

Abstract

The problem of non-performing loans in Iraq is worsening day-by-day and remains a continuous threat to the stability of the banking sector. This study examines macroeconomic factors including gross domestic product, interest rates, inflation, and oil revenues, as well as institutional factors such as capital adequacy, liquidity, and profitability using multiple linear regression applied to quarterly data. The findings reveal that inflation, interest rates, and GDP reduce asset quality and increase credit risk, while oil revenue growth lowers non-performing loans during periods of economic expansion. The results provide important insights for policymakers on strengthening the resilience of Iraq’s banking system and improving credit risk management.

Suggested Citation

  • Hiba Yousif Taha & Husam Abbas Ali, 2026. "The problem of non-performing loans in Iraqi banks: An econometric study of the impact of economic and institutional factors on asset quality," International Journal of Business and Management (IJBM), International Emerging Scholars Society (IESS), New Zealand, vol. 5(1), pages 35-49, January.
    • Handle: RePEc:cwd:ijbmnz:v:5:y:2026:i:1:p:35-49
    DOI: 10.56879/ijbm.v5i1.02
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    References listed on IDEAS

    as
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