The Role of Financial Analysis in Reducing Risks When Making Credit Decisions


  • Ribin Jamal Fatah College of Administration and Economics - Sulaymaniyah University
  • Rizgar Ali Ahmed College of Administrative Technology - Polytechnic University in Sulaymaniyah



The aim of the research is to study the role of financial analysis in reducing and reducing credit risks in commercial banks. The problem of the study was that financial analysis is considered the most helpful means for management and other beneficiaries in making rational decisions in order to reduce credit risks, although many banks have Do not pay much attention to the effective role of financial analysis in reducing credit risks. The aim of the research is to identify the ability of financial analysis of its types to reduce bank credit risks, and to identify the extent to which banks rely on financial analysis as a tool for credit rationalization. The research also dealt with showing the role that the information available using financial analysis tools plays in the process of making rational decisions. Reducing bank credit risks. The study reached several results, including: the bank conducting a financial analysis before granting credit, relying on financial ratios in analyzing credit data that is the least risky, relying on a model for classifying credit and providing information that in turn reduces credit risks for commercial banks. The study also recommended A number of recommendations, including: attention to analyzing customer data before granting credit, and attention to developing models for classifying bank credits.