The Role of Responsible Financing In Reducing Financial Distress: An Analytical Study In A Sample of Iraqi Banks

الملخص

Abstract

     The research aims to show the extent to which the Iraqi banks in the research sample rely on the principles of responsible financing in the process of granting loans, while showing the role of applying the principles of financial commitment and social commitment for responsible financing in reducing or limiting non-performing loans. While the research problem is represented by a main question: Does adopting the principles of responsible financing contribute to reducing financial distress while ensuring that the needs of society for loans are met? Considering that "responsible financing works to reduce the risks of financial distress in Iraqi banks through financial and social commitment in the process of granting loans", and to reach the desired results, descriptive analysis and regression analysis were used to show the relationship between responsible financing and financial distress and to determine the impact of each dimension of responsible financing on financial distress. The research reached a set of conclusions, the most important of which is that the banks in the research sample differed in their dealings with the dimensions of responsible financing, which directly affected financial distress.

Keywords: Responsible Finance, Financial Commitment, Social Commitment, Sustainable Finance, Financial Distress.