محمد طاهر فريد جاسم الطبيعة القانونية لعقود القروض الشخصية في العمل المصرفي

Abstract

We conclude from this study that the risks of bank loans are the likelihood that borrowers will fail to repay the amounts of the loans, their interest, and all other agreed-upon expenses to the lending bank, resulting in some legal consequences such as losing part of its capital in addition to the additional costs of monitoring these loans, which could lead to bankruptcy.

The management of these risks encompasses all the processes and procedures before or after the realization of bank loan risks, which are carried out by the relevant authority in the bank to avoid or minimize the losses caused by these risks. The bank is also obligated to avoid loan risks before granting a loan by conducting due diligence on the customer. After the loan is granted, it is required to monitor the granted loan and manage its risks if they materialize. There are many risk mitigation measures, including guarantees provided by the customer, capital adequacy standards, cash reserves, and restrictions imposed by the central bank or financial institution, as well as diversification and participation. There are also means to transfer risks when they occur from the lending bank to a third party, such as loan insurance, securitization, and financial derivatives.

We also do not find the application of financial derivatives contracts or loan securitization in Iraqi banks as means to mitigate the risks of bank loans, because these modern tools require a stable financial and commercial environment, economic stability, and regulations that are compatible with their nature, in addition to legislative stability.