THE EFFECT OF THE CAPITAL ADEQUACY CRITERION IN THE SUPERVISORY CONTROL OF THE CENTRAL BANK OF IRAQ ON THE SPECIALIZED BANKS

AN ANALYTICAL STUDY

Abstract

        Performance evaluation has become one of the most important factors that contribute to the success of any economic unit. Due to the vital role played by economic units in their various forms, areas of work and objectives in the national economy, the need to study the capital adequacy criterion, which is used as a supervisory control by the bank Central Bank of Iraq in assessing the performance of banks in order to protect deposit funds by taking a minimum capital to prevent the risk that may result from credit risks and protect banks from exposure to real problems as a result of bankruptcy or lack of liquidity, The use of the capital adequacy criterion in evaluating the performance of specialized banks adversely affects their ability to achieve their development objectives, because the use of this standard leads to Disruption of part of the bank's own resources on which the banks specialized in the provision of credit development, which differ from the sources of funds of commercial banks that rely primarily on deposit funds and this is what the standard aims at the application, which leads to the provision of false data on the evaluation of the performance of these In order to prove the above problem, the research was based on the hypothesis that the capital adequacy criterion negatively affects the banks' specialization of their developmental objectives. The main objective of the study was to highlight the requirements of supervisory supervision and capital adequacy standard as one of its important tools In the performance evaluation process, the researcher assessed the performance of the specialized banks with the capital adequacy criterion and then commented on the results and their impact on the possibility of achieving the developmental objectives of the specialized banks. The research concluded with a number of conclusions, the most important of which is that the capital adequacy criterion is not compatible with the nature and objectives The study recommended a set of recommendations that the concerned authorities should perform when evaluating the performance of the evaluation of the performance of the three sectors (agriculture, industry, real estate).