Predicting Financial Failure Using The Bankometer S-Score Model. A Study of A Sample of Iraqi Private Banks

Abstract

Abstract the research aims to verify the suitability of the Bankometer S-Score model for predicting financial failure in Iraqi financial institutions. A number of private Iraqi banks that were placed under the tutelage of the Central Bank of Iraq were chosen to be the research sample, and the reason for selecting this sample was to verify the accuracy of the Bankometer S-Score model in predicting financial failure. As for the temporal limits of the research, it was between 2017 and 2018, a period that reflects the continued tutelage of the Central Bank of Iraq over these banks. The research concluded that the Bankometer model can be adopted to predict financial failure in Iraqi financial institutions because the S-Score of the research sample banks was within the standard limit of S < 50, which indicates the state of financial hardship and is identical to the financial problems experienced by the banks of the research sample that were the reason for placing them under Central bank tutelage. Here, the research hypothesis can be accepted.