Analysis of the relationship of external determinants of profitability and their impact on banking stability through the mediating role of profitability indicators

This research aims to shed light on the relationship of external determinants and their impact on banking stability through profitability indicators, and the external determinants were represented by (inflation, GDP, exchange rate, interest rate risk) as independent variables in Iraqi banking stability using the (Z-Score) indicator as a variable. Followed, and the mediating variable profitability with its indicators (the rate of return on deposits, the rate of return on the right of ownership). The research relied on the practical side on the financial reports and statements published for a sample of banks (2005 - 2020), and the study relied on data analysis (Panel Data Analysis), and analysis ( Path Analysis), using statistical programs, and one of the most important conclusions is that the increase in Iraqi banks’ interest in the research sample contributed to profitability indicators from the success of banks and the increase in the factors of confidence and reassurance for shareholders and dealers with the banking sector. Negative effects on banking stability