Analysis of the financial stability of a sampling of commercial banks listed on the Iraqi stock Exchange using the Altman model for the period2013_2022
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Abstract
The purpose of this study is to analyze the financial stability of the commercial banks and to examine the financial stability in the study sample banks using the Altman model. Additionally, it aims to evaluate these banks', their management's, and stakeholders' capacity in facing financial shocks. The financial stability of the banks in the study sample has predicted by using the Altman model, and adopting the model's financial ratios as a means of measuring financial stability. In order to do this, the study embraced the following hypothesis: (Banks’ financial stability by using Altman model influences the total stability).
Throughout the study's 2013–2022 period, five banks have been the focus. Appropriate financial instruments and techniques have been employed, such as the financial analysis software (EXCEL10) program.
The study has come to a number of results, the most notable of which being that the Altman model is appropriate for assessing an institution's financial situation and that using the model gives unambiguous proof of the soundness and financial standing of the banks. The study also has made a number of recommendations, such as the need to work toward enhancing management knowledge and abilities, enhancing administrative performance in the study sample banks, especially in the area of financial investment, taking advantage of investment opportunities, and making use of deposited funds, all of which are indicators of the health of the bank's finances and the achievement of profits for it and its stakeholders
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