The impact of the return index on investment profitability indicators for commercial banks in Iraq

Abstract

Despite the availability of bank liquidity in sufficient quantities at most of the governmental and private Iraqi banks, most of these banks suffer from weaknesses and the inability to employ their financial resources in the areas of investment available to them. In terms of financial resources, as well as because of the risks they may face resulting from economic, political and security instability, as well as the risks of exchange rate fluctuations, as well as the lack of diversification of the financial investment tools available to them.

 The research dealt with the importance and role of banking investment in economic activity and the process of economic development by providing financial resources that are employed in various sectors of the national economy.  There is a correlation between return on investment and profitability indicators. The research concluded that there is a positive correlation between the rate of return on investment and the indicators (rate of return on assets and rate of return on equity), while there is a weak correlation with the rate of return on deposits