Evaluation of financial performance and crisis periods of the banking sector, a comparative study between Iraq and Turkish commercial banks

This study aimed to evaluate the financial performance and crisis periods of Iraqi and Turkish banks and to determine their effects. A total of 16 banks were included in the research, 8 banks from each country, and the data included in the financial reports of the banks examined during the period (2011-2021) were analyzed. Appropriate statistical methods were used to measure the relationship between the three dependent variables and the six independent 118 variables and to discuss and interpret the results. In the study, we see that the dependent and independent variables of the Iraqi banks for the banks of the two countries are affected by each other compared to the Turkish banks. According to the research results, the differences between the ratio of liquid assets to short-term liabilities and the return on equity for both Iraqi banks and Turkish banks are not statistically significant (p>0.05). The average value of the series of loans received to total assets ratio is statistically significantly higher in Iraqi banks than in Turkish banks (p<0.05). According to the panel data analysis results, AKTV (B: 0.07188; p<0.01), LA (B: 0.05765; p<0.05), FK (B: 0.0000877; p<0.01) and GDPO (B:) on the return on assets (ROA) of Turkish banks. -0.000036; p<0.01) series is statistically significant. On the ROE values of Turkish banks, AKTV (B: 0.4751438; p<0.05), LA (B: 0.4240027; p<0.05), FK (B: 0.0004896; p<0.05) and GDPO (B: -0.0002293; p<0.05). The effect of the series is statistically significant. The explanatory power of the model is 0.3588 and explains 35.88% of the total variance. According to the results of the panel data analysis for the effect of research variables on the ROA of Iraqi banks, the effect of LA (B: 0.3499939; p<0.05) and GDPO (B: 1.679918; p<0.05) series on ROA is significant. The explanatory power of the model is 0.1973 and explains 19.73% of the total variance. According to the results of panel data analysis for the effect of research variables on the ROE of Iraqi banks, TMTV (B: -0.1871698; p<0.01), TKTV (B: -0.0695002; p<0.05), FK (B: 0.0386603; p<0.01) on ROE. and GDPO (B: 4.501484; p<0.01) series are significant. The explanatory power of the model is 0.2509 and explains 25.09% of the total variance. According to the Mann Whitney U test 119 results for crisis periods, Turkish banks are more resilient during the crisis period than Iraqi banks in the last three years.