The impact of financial capital in regards of bank liquidity risk constraints and its reflection on lending decisions: An Exploratory study for a sample of operating banks in sulaimani province

Abstract

The Research aims to show that banks have great potential to transfer and move money between different sectors in a way that can develop these sectors and promote their growth, which prompted some governments to pay special attention to banking by supporting it with rules that ensure the flow of work in it as well as the development of individual confidence in it. The study of the importance of banks was not only focused on governments, but a significant number of researchers worked on knowing the direct and indirect effects of various banking activities on the economy. While a number of other researchers turned to study the impact of different policies and strategies adopted by banks on the performance of that bank This is very important because we cannot establish a thriving banking sector without having thriving banks, and establishing their policies and strategies on basic principles, which will inevitably reflect on its various performance indicators. The study concluded that the adequacy of bank capital affects the degree of bank security, as there is a positive and statistically significant relationship between them. ,Therefore, through the findings, the researcher suggested the need to use financial safety measures, which is one of the most important indicators to identify credit risks and interest rates, and the need to provide a unified and effective risk management framework in all banks be exposed to it.