The Impact of bank regulation and supervision on bank's financial stability and soundness

Abstract

The study examines the practice of the principles of effective banking supervision in private banks in Iraq. The main research question was: Is the Central Bank effective in organizing and supervising the private banks in Iraq? It compares the practice of banking supervision in private banks in Erbil-Iraq with the principles of Principal of effective banking supervision issued by the Basel committee on banking supervision (2012) and to learn how these principles are effectively practiced and implemented. The study collected data by distributing 144 questionnaires to high-level bank employees involved in banking management. The target population consists of the CEO, board directorate members, credit staff, credit risk managers, and head departments. We Used version 26 of the Statistical Package for the Social Sciences (SPSS) software to analyze the data in the study. Descriptive statistics, such as percentages and frequencies like mean, standard deviation, and variance, are produced as a result of the data analysis. In addition, regression analysis, ANOVA analysis, and Pearson correlation between variables are all examined in the study. Respondents believe that Iraq's private banks effectively practice banking supervisory standards. According to the survey, banks are actively creating policies and practices for identifying, assessing, monitoring, and controlling credit risk. However, it would recommend rerunning the study on a sample that would be geographically more diversified and address a more significant number of respondents, which may be tested for representativeness and possible biases