The impact of internal factors on the return on the loan portfolio and credit facilities in commercial banks - an applied study in a sample of Iraqi private banks for the period 2000-2008

Abstract

The study aimed to identify the internal factors affecting the return on a portfolio of loans and credit facilities in the Iraqi private banks in order to strengthen its positive impact and minimize their negative impact. To achieve the objective of the study have been collecting data for a sample of private banks (and the eight banks) of the annual reports issued by it, as well as reports and publications of the Central Bank of Iraq.
The study concluded that there is a positive statistically significant morale between the return on a portfolio of loans and credit facilities as the dependent variable, and a set of independent variables represented by the size of the bank, and the rate of capital adequacy, liquidity and cash on hand, and the rate of spending on advertising, and age of the bank.
On the other hand, the study showed a correlation is negative (inverse), but with a significance between the return on the portfolio and the employment rate for deposits in loans and credit facilities. While there were not statistically significant relation with a variable number of bank branches.
According to the results, the study proposed a set of recommendations that can contribute to achieving the objectives of the most important trend towards the practice of long-term lending activity for the consequent larger rates of profitability relative to short-term investments actively.