Impact of Total Quality Management Requirements on Banking Financial Performance in Iraq

This study aims to examine the impact of total quality management and its variables, represented by customer focus, continuous improvement, and leadership on financial banking performance. The study is concerning financial performance,takes two dimensions; the first is represented by increasing profitability which includes three indicators: profit margin, return on assets, and return on equity. The second is represented by decreasing risks and included two indicators: liquidity risks and capital risks to know the impact of the requirements of total quality management. Data collection was based on questionnaire and annual reports from 2006 until 2010. The results showed that the total quality management requirements (customer focus, continuous improvement and leadership) have a positive and significant influence on the bank financial performance. Meanwhile,the analysis of banks annual report recorded and supported that the bank performance was increased by adapting the total quality management requirements during the period between 2006-2010. Findings for the research will support the literature review of total quality management and bank performance, as well as the banks management to make the better decision to enhance the bank performance.