The Impact of Asset And Liability Management On Firm Profitability: An Analytical Study at A Sample of Commercial Banks Listed In The Iraq Stock Exchange

Abstract

The current  research highlighted  some important topics in the banking activity and the management of assets and liabilities and their relationship to profitability as well as the risks  to which the banking sector is exposed for the purpose of maintaining the value  of the bank, and to achieve the objectives of   the research,  indicators were selected to measure the management of assets and liabilities (gap sensitivity ratio, relative gap, financing gap) as  well as Shri measure profitability (return on assets,  return on deposits), and the goal of managing assets and liabilities e and managing the gap of  assets  and  liabilities  in banks (maximizing profits), and the research sample was represented by five commercial banks listed in the Iraq Stock Exchange and  ej: (Babylon  Bank, North Bank, United Bank, the Commercial Bank of Iraq, Mosul Bank for Development and Investment) The research time period was six years, and the study reached a set of results, most notably: There is an impact between the financing gap and the management of liabilities and assets and the profitability of banks, and the researcher has reached a set of conclusions, the most important of which is to increase the profitability of banks. The study sample by searching for the most important factors through which profitability can be increased by exploiting the financing gap. The study concluded with a set of rational recommendations Two variables, the most important of which is the analysis of the relative gap, which helps banks control the deduction date of assets and liabilities and determine its ratio or value to face risks.