Effect of external factors on the profitability of commercial banks

Case study of the National Bank of Iraq for the (period (2004-2016

Abstract

       Profitability considers as a relation between the returns made by the banks and investments contributed in the concluding of it as a main goal the administrations of commercial banks seek for it because of it’s a measure to judge on its efficiency and activity in using resources, and maintain the consistency and support its the financial position and proficiency, the thing that leads to its ability to counter the risks and obligations on it. 

      Profitability in commercial banks effected by a group of  external factors , and the unit of importance of these factors differs as from the degree and the strength on the Profitability. 

      For this purpose, in aiming to make a research on these factors and consider its importance on effecting the profitability and in compliance with it the proper and adequate politics is set to enhance profitability, as the technique of cointegration have been depended on according to Johansen method, to show the range of stability of these factors and degree of its integration on long term.