Managing Liquidity and Profitability in Islamic Banks in Iraq - Case Study of the National Islamic Bank for the period 2010-2017


Abstract The purpose of this research is to clarify the concepts of liquidity and profitability of Islamic banks and how to manage liquidity to influence the ability of banks to achieve profits. Therefore, after the presentation of the theoretical side of the research, study the case of the National Islamic Bank in Iraq and conduct the appropriate statistical tests to indicate whether there is a relationship between (ROA, ROE, ROD). Based on the published bank data and using the SPSS program, a number of results were reached. The most important of these results is that good liquidity management will inevitably lead to better profitability. On the other hand, we note the negative relationship between the liquidity and profitability of the National Islamic Bank and the absence of significant relationship between the liquidity of this bank and profitability for the period 2010-2017 despite the high liquidity ratios in general and low rate of return on assets.