The Impact of Governance on the Performance of Islamic Banks: A Case Study of Selected Banks in Iraq

The study aimed to determine the relationship between governance principles and financial performance of Islamic banks in Iraq. It delved into the specificity of governance in Islamic banks, discussing its importance in the banking sector generally. The research measured the impact of governance rules on financial performance using a sample of Islamic banks in Iraq from 2018 to 2022. The researcher utilized the correlation function between the dependent variable, represented by the return on total assets (indicating financial performance), and corporate governance variables as independent factors. The findings revealed a strong relationship between the application of governance principles and the financial performance of the studied Islamic banks. Results showed a positive correlation between return on assets and factors such as board composition, board size, committee count in the board, and the number of members in the Shariah supervisory board. As the independent variable (governance principles) increased, the return on assets (dependent variable) also increased. Additionally, there was a negative correlation between return on assets and ownership concentration.