THE EFFECT OF BANK CREDIT ON FINANCIAL PERFORMANCE USING CAPITAL AS A MEDIATING VARIABLE IN A SAMPLE OF IRAQI COMMERCIAL BANKS

Abstract: The study aimed to identify the impact of bank credit on financial performance using capital as a mediating variable in a sample of Iraqi commercial banks. The researcher used the descriptive analytical approach, and used data analysis for five Iraqi commercial banks. The most important results of the study were as follows: The results of the study showed that the capital affected the investment in shares and not vice versa, the shareholders’ equity affected the deposits in this period and not the other way around, the shareholders’ equity affected the investment in shares in this period and not the other way around, the shareholders’ equity affected the total assets in this period and not the other way around, the deposits affected On investing in shares during this period and not vice versa, the total assets affected the investment in shares during this period and not vice versa. The credit did not directly affect the financial performance variables, but rather it indirectly through the capital (the intermediate variable). We also note that the credit affected the shareholders’ equity in the previous period and the current period. We also note that the mediating capital variable affected the financial performance variables in Fiscal period and prior periods