The importance of banking liquidity in commercial and Islamic banks in Iraq for the period (2017-2021)

Abstract

The sources of liquidity in commercial and Islamic banks stem from current deposits and savings, which requires the bank to return this money upon request to its depositors, which requires banks to pay attention to studying liquidity because the ratio of deposits to total liabilities is very large, and also that part of these liabilities are short liabilities Term. The research aims to clarify banking liquidity and its importance in commercial and Islamic banks, and for the purpose of achieving this goal, banking liquidity indicators were used in analyzing the data of the annual reports of commercial and Islamic banks listed in the Iraq Stock Exchange for the period 2017-2021, and the data was measured and analyzed and results extracted using Program (Eviews version 13). One of the most important conclusions of the research is that Islamic banks were better than commercial banks in banking liquidity indicators (employment ratio, legal liquidity, legal reserve, cash balance), and accordingly several recommendations were formulated, the most important of which is. The importance of the contribution of Islamic and commercial banks in many investment fields, both locally and globally, which reflects positively on their profits and their banking position in the banking market, which is reflected in the economic growth of the country.