Comparing Between Commercial and Investment Banking: A Case Study from Iraq
Abstract
The research aim is to evaluating investment and commercial banking to led the investor who want to be shareholder in equity to the suitable banking in Iraqi environment, which banking is suitable for risk averse and which is suitable for risk seeker, by comparing between depending on market attractiveness and business strength by comparing between Iraqi’s investment and commercial banking for the period (2010-2014), it is evaluated market attractiveness by using banking return, banking risk, banking size, and banking stability and business strength by using market share (competition), and banking development. The data were from financial report used for statistical testing of difference between two means for comparing instead of comparing between variables directly by using t-test between means. The result explained there wasn’t a difference between the two banking marketing, but commercial banking was more total risk than investment banking and systematic risk was the most in both banking. Research conclusion the risky environment, is resulting the conservative depositors decreasing the project, and weak effect of globalization on banking, that is resulting nearly same strategies to avoid internal risk by trying to create safely internal environment depending on strategy of less risk through minimizing unsystematic risks which reduce the ability on diversification which led to weak globalization’s effect.
Keywords: Market Size, Market Share, Banking Development
JEL Classification: G21, G24
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DOI: http://dx.doi.org/10.17977/um002v8i22016p207
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