Abstract

The aim of this research is to know the non-deposit funding sources and their impact on the profitability of Iraqi commercial banks for the period (2009-2018), as they represent the lifeblood of these banks because they have a direct and actual impact on their performance, and the fact that non-deposit funding sources have become important in financial studies. Therefore, it was necessary to address them and demonstrate their importance in this research, and the research methodology consisted of the inductive approach and the quantitative standard method to reach more accurate results using the statistical program ((EVIEWS 10), where the behavior of the dependent variable (profitability) was studied measured by the rate of return on assets (ROA), the rate of return on equity (ROE), and the independent variables (non-depositary funding sources) represented by creditors and allocations. To achieve this, a model was built to estimate the relationship between the independent variables and the dependent variables based on the Panel Data model. Several results were reached, the most important of which is the existence of a positive and significant relationship between creditors and profitability measured by the rate of return on assets (ROA) and the rate of return on equity (ROE), and the presence of an inverse significant relationship between allocations and profitability measured by the rate of return on assets (ROA) and return on rights. The researcher also recommends the necessity to diversify the sources of funding in order to distribute the risks that commercial banks in Iraq may be exposed to in general and the commercial banks (the research sample) in particular, the most important of which is the risk of liquidity shortage, which increases their profitability, and commercial banks should take advantage of opportunities. In an optimal way to attract non-depositary funding sources and invest them in a way that raises the profitability index of commercial banks in Iraq.