<strong>ملخص الدراسة:</strong>

The banking system is regarded as an important tool to achieve the economic stability in any of the worlds developed economics through providing the suitable environment for the economic policies in general and the monetary policies in particular to achieve its tasks actively, If this system had the needed depth and the suitable density it will be able to leave its effect on the monetary policies aiming at achieving the economic stability.The banking system has a great effect on the economic stability variables (Gross domestic product, Inflation and unemployment) by being characterized of a good degree of development coping with the modern technology in the banking area; it gives a positive effect on the Gross domestic product through credit and another effect limiting the inflation and unemployment in economy.This research aims at revealing the effect of the banking system on the economic stability variables all over Iraq through (some variables expressing the reality of this system.The research reached a result, which states that (Iraq) the contrary with the undeveloped and dependent banking system during period of study which led to the decline of all the signs through which a decision can be made about the nature of the economic stability in Iraq