Abstract
The research aims to determine the impact of the financing structure (common stock, debt, and retained earnings) on banking stability. The research problem included the extent to which the financing structure and its various components contribute to achieving banking stability. A sample was selected from two commercial banks listed on the Iraq Stock Exchange, namely the Bank of Baghdad and the Trans-Iraq Bank. An important indication of the components of the financing structure on banking stability. Several financial and statistical equations were adopted using the statistical programs (Eviews) and (Excel).The research reached conclusions, the most important of which is that banks’ heavy reliance on debt in their financing structure leads to a decrease in the rate of banking stability, that their reliance on debt may expose them to liquidity risks, and that these banks may be exposed to financial distress and instability, while banks that rely on stocks are characterised by with a high rate of banking stability, it has a low-profit rate.The research recommends that banks that rely heavily on debt financing should reduce their reliance on this source and try to diversify their sources to achieve stability and avoid financial distress and instability resulting from reliance on debt financing sources, which results in financial increases. Risks for the bank
