AL-Qadisiyah Journal For Administrative and Economic sciences

Influence of Macroeconomic Factors on Credit Risk Management in Iraqi Commercial Banks

Document Type : Research Paper

Authors

Noor Noor Salah. ALramadan Noor Salah. ALramadan
Noor Sabah Hameed Al-Dahaan
Mustafa Hasan Nasrallah

University of Kerbala

https://doi.org/10.33916/qjae.2026.01251260
Abstract
This study investigates the impact of macroeconomic factors on credit risk management in Iraqi commercial banks, addressing the limited empirical evidence on how macroeconomic instability affects banking credit portfolios in emerging economies such as Iraq. Using a panel data approach for 10 Iraqi commercial banks over the period 2015–2024, the research measures how variables such as GDP growth, inflation, and capital adequacy influence Non-Performing Loans (NPLs). The descriptive analysis focuses on the 2020–2024 period to capture recent economic shifts. The results, based on Fixed Effects estimation, show that the model is statistically significant (Prob > F = 0.000), leading to the rejection of the null hypothesis. Findings indicate that GDP growth and capital adequacy significantly reduce credit risk, while inflation and interest rates exacerbate it. The study recommends strengthening internal bank capital and enhancing macroeconomic stability to mitigate credit defaults.

Keywords

Macroeconomic factors
credit risk management
Iraq
Commercial banks
Crossmark
AL-Qadisiyah Journal For Administrative and Economic sciences
Volume 28, Issue 1
Spring 2026
Pages 251-260

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