The Impact of Financial Intelligence on Banking Performance - An Analytical Study of a Sample of Commercial Banks for the Period from 2013 to 2022

Abstract

The current paper attempts to measure financial
intelligence and banking performance, highlighting their
significance. Financial intelligence was measured through a
mathematical relationship focusing on value creation and
monetary production, multiplied by the planned net income
rate, along with control and organization. Banking performance
was assessed using indicators of profitability, liquidity, and
security. The study addresses the relation and impact between
financial intelligence and banking performance indicators,
relying on a main hypothesis that there is an effect between
financial intelligence and banking performance. The study
population consisted of commercial banks listed on the Iraq
Stock Exchange, with a sample of six banks selected for the
research (Iraqi National, Iraqi Trade, Ashur International,
Iraqi Investment, Al-Mansour Investment, Baghdad) from a
total of 24 commercial banks. The study utilized a time series
spanning from 2013 to 2022. A set of financial results was
reached based on financial indicators for measuring the metrics,
while the cross-sectional method of least squares was employed
to test the statistical hypotheses. The findings of the financial
analysis revealed that the banks possess high capital adequacy
ratios, low profitability, and a high level of liquidity. The study
concluded that the commercial banks in the sample suffer from
low profitability, which is attributed to weak investment
decisions and a failure to utilize available financial resources
effectively.