Predicting bank continuity using the Kah-Tans model: An applied study of several Iraqi commercial banks for the period (2018-2023)

Abstract

The Kah-Tans Model was used to predict the ability of Iraqi banks to achieve the continuity condition. This model, considered one of the most accurate models, was used to predict a bank's ability to maintain continuity and avoid bankruptcy. The seven most important Iraqi banks were selected, the data for which is fully available on the website of the Iraq Securities Commission. Several conclusions were reached, including that some banks face financial difficulties due to a lack of continuity. This does not occur suddenly, but rather gradually. Other non-financial factors may intervene, such as incorrect decisions by bank managers, in addition to market inefficiencies, which may be reflected in a decline in the bank's continuity. Furthermore, the presence of an efficient and effective internal audit department will provide the ability to protect shareholders' rights, preserve financial resources, and provide accurate information, which contributes to the bank's continuity.