Banks perform several functions, the most important of which is lending money to people, whether they are natural or legal persons. The goal of this is to maintain confidence in the banking system and protect the funds deposited with it, in addition to contributing to the regular circulation of funds and organizing financial affairs in a way that serves economic developments., On this basis, banks have adopted preventive measures aimed at taking the necessary precautions when studying requests for granting loans from customers, This is with the aim of avoiding any risks that may arise that negatively affect its profitability, which may cause financial problems for the bank, Which may cause financial problems for the bank, and may lead to the creation of a gap between the bank’s management and shareholders, or a disruption of the confidence of those dealing with the bank, whether depositors or others, and these risks may contribute to the bank’s failure to fulfill its obligations. Therefore, banks took the initiative to develop remedial and preventive mechanisms to reduce these risks, the most important of which are preventive mechanisms to avoid the occurrence of the risks of these loans and their effects, which will be the subject of our research.
Majeed Ibrahim (Sat,) studied this question.