The role of banking effort tests in the face of monetary credit risk and its impact on the profits and adequacy of the bank’s capital

/ a case study of Sumer Commercial Bank for the period from 2015 to 2020

Abstract

The research seeks to identify the proposed scenarios to predict and ward off monetary credit risks that the bank is exposed to in the future, using the banking stress tests model, and showing their impact on capital adequacy and profitability ratio,To achieve this purpose, Sumer Commercial Bank was taken as a case study, and mathematical equations were used to extract the results. Low percentage of profits and returns, strictness in the process of granting credit and financing operations in order to reduce credit risks.