Bankaların finansal performansını iyileştirmede iç kontrolün rolü

The internal control system in banks has witnessed a gradual and important development adapted to the rapid and successive developments in the banking sector. Therefore, internal control is no longer only a process to safeguard banking activities and cash, however, it has developed into a set of components set by the senior management to ensure the achievement of the improved financial performance of the bank. In this regard, the importance of internal control is increasing due to its effective role in validating that all banks' activities are carried out in a manner consistent with the policies and strategies set by the board of directors to improve the bank's financial performance. The ultimate purpose of this study was to explore the role played by internal control components in improving the financial performance of banks in Iraq. This study firstly addresses the information about internal control system and the important internal control for banks. Later, information on the financial performance of banks and their indicators and measurement was included. In the last part of the study, a questionnaire was applied to the managers of Iraqi banks, to investigate whether internal control and its components, had effect on improving the financial performance of banks. As a result of the analyses, it has been concluded that the control environment, risk assessment, control activities, information and communication and monitoring which constitute the components of internal control, positively affect the financial performance of the banks.