Comparison key factors between the success of Baghdad bank and the failure of North bank in Iraq

Abdulrazaq Mahmmoud, Ares (2017) Comparison key factors between the success of Baghdad bank and the failure of North bank in Iraq. Other thesis, American University of Iraq - Sulaimani.

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Abstract

In Iraq, after 2014, more banks have failed because Iraq has been facing economic problems since that time in certain sectors such as agriculture, oil, gas and commercial real estate. In this study case, I will be discussing two banks, North Bank and Baghdad Bank. North bank is the one which has failed and Baghdad Banks has succeeded. In this study, the reasons of failure and success of the two banks will be introduced. The study will show that isolating such factors helps identify banks likely to fail and strengthen its ability to supervise and to help prevent other banks from failing. It will also show that while economic problems make it more difficult for a bank to direct a profitable course, the policies and producers of a bank’s management affect the bank to either success or fail. Central Bank of Iraq (CBI), evaluated that acting poorly in management has played a big role in the decrease of 90% bank’s failures. CBI also states that “many of the difficulties the banks experienced resulted from inadequate loan policies, problem loan identification systems, and systems to ensure compliance with internal policies and banking law. Moreover, insider abuse and fraud were significant factors in the decline of more than one-third of the failed and problem banks. Much of that insider abuse or fraud involved directors, senior management, or principal shareholders or was related to their failure to provide adequate oversight and controls.” This paper presents the findings of our study. It identifies the weaknesses that appear to be most powerful on a bank's failure and evaluates the main factors that differentiate banks that fail from those that do not, even when economic plays poorly in that environment.

Item Type: Thesis (Other)
Subjects: University Thesis > MBA Thesis
University Thesis > MBA Thesis
Depositing User: N/A AUIS Library
Date Deposited: 23 Jan 2018 06:35
Last Modified: 28 Jan 2018 07:28
URI: http://eprints.auis.edu.krd/id/eprint/79

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