Samir Taha Yassen, Seemaa Anmar Salim Alrefaee
Financial analysts believe that ratios have a significant impact on bank credit. Therefore, Understanding the effects of ratios in credit is critical both empirically and theoretically. Recent empirical studies indicate that most of the ratios have a positive effect on bank credit and a few of them have a negative effect. This paper explores the relationship between financial and credit ratios in 12 Iraqi banks for the period 2009-2017 using the Seemingly Unrelated Regression Model (SURs) technique. The use of this period is due to the fact that the Iraqi market for securities, which is the source of the data, is newly established, and most banks belonged to this market in later years, and the data of most banks is cut off and not announced after 2017. When using estimation methods for panel data models, which are fixed effects models and random effects models, the problem of correlations between random variables appeared, so it was replaced by the (SURs) method that cancels the correlations between random variables. It was used between time periods because the cross sections are larger than the time series. The research found a positive and statistically significant effect of current ratios, return on assets, stock turnover ratios, loan ratios and the dividend Ratios in credit, and a negative, statistically significant effect of ownership and earnings per share ratios. As for the ratios of account receivables turnover and Profit repeater, they had no significant effect.