Redistribution of Banking Risks in Light of The Transition to Electronic Payments in Iraqi Banks for The Period 2021-2025

During the period (2021-2025), the Iraqi banking sector witnessed an accelerated shift towards the adoption of electronic payments, which led to the restructuring of the banking risk structure.Thisstudyaimedto analyzethe nature of the redistribution of banking risks in light of the transition to electronic payments, by testing the two research hypotheses about the existence of a relationship and a statistically significant effect between the variables of digital transformation and banking risk indicators.The researchwas basedon the descriptive analytical approach, using financial data from five Iraqi banks (al-Rafidain, Al-Rasheed, Iraqi commercial, Iraqi national, Baghdad).The resultsshoweda statistically significant stronginverserelationshipbetweenthe indicators of electronicpaymentsand composite banking risks (correlation coefficients ranged from -0.786 to -0.866), and the regression model also revealed a high explanatory power (R2 = 0.900).The studyconfirmedthe hypothesisof" redistribution "rather than" cancellation " of risks, as traditional credit risks declined (non-performing loans decreased from 10.5% to 7.7%) against the rise of digital operational risks (increased from 0.19 to 0.27).The research concluded that digital transformationrepositionsriskswithinthe financialsystemand requiresthe developmentof advancedriskmanagementmechanismsthat keep pacewith the digital banking environment.