Abstract
The study aims to know the liquidity index and its role in financial stability in the banking system, given that banks are one of the important elements in building the economy and through them the economic stability of the country is enhanced. This importance comes from the effective role of banks as mediating institutions between supply and demand units in addition to providing all modern banking services. Therefore, The liquidity index is considered one of the important indicators that reflect the bank’s activity in terms of the strength of its balance sheet with obligations to others, as well as the extent of its commitment to the required international standards and instructions issued by the Central Bank of Iraq, which prompted us to choose the research topic, on a sample of Iraqi commercial banks for the period between (2018 to 2022). ) for six commercial banks. The descriptive analytical approach was adopted based on audited financial statements taken from the annual reports of commercial banks listed on the Iraqi Stock Exchange. The research problem is based on whether there is a relationship between the liquidity index and banking stability, which proves the validity of the study’s hypothesis that there is a relationship. There is evidence between the variables of the study, namely bank liquidity measures and the extent of their impact on banking stability. The most important conclusions and recommendations were also reached to overcome bank liquidity risks
