Measuring Banking Operational Efficiency and its Impact on Productivity: An Applied Study on Selected Iraqi Private Banks

Abstract

This study dealt with concepts related to banking operational efficiency and its measurement in Iraqi banks. The study is applied as an example on five known private banks in Iraq, and these banks are (Baghdad, Al-Mansour, Ashur, Al-Ahly and Al-Credit). For the period from 2015 to 2018 based on financial ratios indicator. In order to identify the management of Iraqi banks for their operational system on the ability to control the costs and profitability. The results of the study showed that some banks (Assyria, Baghdad, and Al-Ahly) are relay on using operational efficiency which resulted in rising their profits and minimizing costs. This was observed clearly in small-sized banks more than in large banks. In addition, it found that the low profits are due to mismanagement of operational costs.