Analyzing the Impact of Economic Development Indicators on the Performance of the Commercial Bank of Syria

An Exploratory Study Using Neural Networks

Abstract

The researcher aims to study and analyze the economic development indicators and the performance indicators of the Commercial Bank of Syria, and then reduce the performance indicators of the Commercial Bank of Syria to a smaller number of factors using factor analysis, in order to reach exploratory models or results or an initial understanding of the nature of the relationship between the variables of the commercial bank's performance and the economic development indicators affecting it in Syria using neural networks. Based on the data published by the Central Bureau of Statistics and the periodic reports of the Central Bank of Syria and the Commercial Bank of Syria for a time series extending from (2005-2020).

The results of the study showed that the performance variables of the Syrian Commercial Bank can be reduced from 8 variables to 2 basic factors, in addition to finding through studying the relationship between the performance variables of the commercial bank and the economic development indicators affecting them using the multilayer Perceptron neural network model that there is a significant impact of the economic development indicators on all performance variables of the Syrian Commercial Bank except for the capital and reserves variable. The most important economic development indicators influencing the performance of the Syrian Commercial Bank were the variables of investment, exchange rate and government spending.