Designing A Quality Costing System In Commercial Banks (Applied Research In The Investment Bank Of Iraq)

Abstract

The aim of the research is to direct the attention of the bank’s management to the types of expenses that are disbursed during the year and which are related to quality costs for proper planning of the disbursement process after categorizing them into its components and paying attention to the costs of compatibility (conformance) and reducing the costs of non-conformity (non-conformity) to the acceptable limit that enables the bank to increase the quality. The service marketed to customers and then increase its profits. One of the objectives of the research is to design a system for quality costs and its application at the research sample bank, and to achieve the objective of the research, the research sought in its practical aspect to choose the Iraqi Investment Bank as one of the commercial banks operating in Iraq as a field for research and application of the proposed system for quality costs, and the research reached a set of results, the most important of which were, The benefits of the proposed design that it provides to management are embodied in performance evaluation and may motivate it to take other measures aimed at improving performance. Improving performance leads to two-way effects. The first is to reduce quality costs, which in turn leads to a reduction in service costs for the bank and then increases productivity and increases profits. The other of the effects is improving the quality of the service, which is part of it by reducing the customer’s waiting time and speed in providing service, accuracy and excluding errors, which leads to an increase in customers’ frequency to the bank and an increase in the volume of their transactions and then an increase in deposits and an increase in revenues and finally an increase in profits. All these positive effects are considered benefits achieved by the system, and the proposed design showed that it reduces the cost of auditing or the cost of conformity and the cost of errors and elimination of them. This is in application of the philosophy of minor destruction in the industry, and this may be the most need in the banking service, if it is represented in the aim of eliminating errors, which means improving performance and reducing costs.