Role of financial analysis in rationalizing credit decision: The example of banks in northern Iraq

Due to the development of the world, needs of peoples and companies begin to increase and people apply to banks to get these needs. Banks offer people a variety of ways to meet these needs, and the way people most often resort to is loans. The main purpose of the study is to determine the extent to which banks rely on financial analysis as a tool to rationalize their credit decisions. In the study, as an example, a practical study was conducted on 100 loan officers working in banks in the Northern Iraq region. In this study was used, statistical analysis program (SPSS) to process the data and find the relationships between the variables. According to the findings obtained as a result of the analysis, it has been determined that there is a positive correlation between the two dependent variables, the loan applicant, and the economic, political situation factors related to the banks, and independent variable, the rationalization of the loan decision, and it has an effect on the rationalization of the independent variable, the loan decision.