Abstract
The research aims to investigate the effectiveness of the Central Bank's tools in achieving banking stability in the Iraqi economy and to address the literature of the Central Bank and banking stability, in addition to determining the impact of the effectiveness of monetary policy tools in achieving banking stability in the Iraqi economy. The study reached a number of conclusions Most importantly, there is a long-term inverse and significant relationship between the independent variable (rediscount rate) and the dependent variable (capital adequacy) because P.V is less than 5%. The research concluded with the most important recommendations, which are to strive to develop the banking system in Iraq by creating trust between the public and banks, which leads to increased savings and consequently increased bank credit.
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