Abstract

This study aims at clarifying the importance of auditing banking performance in measuring the impact of changes in bank loans and deposits to a sample of commercial banks in Iraq. As a comparative study, only three commercial banks are: Iraqi Investment Bank, Al-Mansour Investment Bank and Mosul Bank for Development and Investment because of the possibility of obtaining its annual reports and also they are characterized by transparency comparison with others. The methodology of the study is based on the quantitative and comparative approach to test the impact of loans and deposits on net profits after tax for the selected sample. The study hypotheses are tested based on data of the loans and deposits on net profits after tax for each bank for the period 2006-2020. According the results obtained from the testing the hypothesis of the study using statistical approaches, it was shown that the loans variable has not significant effect on increasing the net profits after tax for all banks, while, it was proved that there is clear effect to the deposit variable on increasing the net profits after tax for only two of three of targeted banks which are: the Al-Mansour Investment Bank and Mosul Bank for Development and Investment. It was recommended to consider the correct financial policy or the auditing banking performance followed by two banks above for exploiting and investing bank deposits.

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