Mechanisms for Developing the Banking System

Abstract

The banking system consists of a total of banking institutions, headed by the Central Bank and next to it the lending and financing institutions represented by banks and financial institutions that play the role of mediation by collecting public funds in the form of deposits, and extending them in the form of loans to investors and business owners, and all this is under the supervision of the Central Bank, which has a role in stability by finding, an with the possibility of facing crises that afflict the state, and the analytical descriptive approach of the legal texts regulating it was, by referring to the position of the Iraqi legislator in the Central Bank Law and the Banking .The problem of the research is to clarify the legal, realistic and technical challenges and the interventions facing the powers granted to the banking reality, and their impact on achieving the stability of the banking system, as its stability leads to support the financing capacity of the national economy as a whole, and otherwise the banking system tends towards stagnation and inability to advance the reality of the banking system Any country must respond to the developments taking place at the regional and international level, and keep pace with the changes and developments, By studying the functions of both the central bank and banks, whether commercial or specialized, we find that there is a close integrative relationship that links them to each other, which contributes to the development of the banking system of the state .And one of the most important recommendations is to increase the capital of specialized banks because of the services they perform of great interest to the citizen, especially those with limited income to reduce their suffering and call for increasing the liquidity of commercial banks and resorting to urging savers to invest, especially since there are banks that offer good interest for.