Maysaa Saad Jawad Hoby
supervisor
Dr. Abbas Kadhim Daami

The research aims to indicate the importance of monetary policy and its impact on banking stability by measuring the impact of monetary policy and their ability to achieve stability in Iraq banking model of a developing country . As it is the banking system, one of the main components of the financial system of a country, and the stability of the financial system will be reflected positively on the stability of the banking and then on the national economy as a whole, and is affected by both the banking system and the stability of the banking in turn changes that affect the national economy, as well as that of the monetary policy sparked immediation each of the indicators of the banking system and the extent of its stability through some of the quantitative and qualitative tools. Recalling the research problem that there is variation in the impact of monetary policy on the stability of the banking among countries due disparity to the different monetary policies in all countries, both developed or developing countries, and this disparity is reflected in varying degrees on the degree of stability of the banking and then on the nature of investment in the economy. The research stems from the premise that the monetary policy impact on banking stability and indicators of this effect by contrast variation economic and financial system followed in each country. The research stems from the premise that the monetary policy impact on banking stability and indicators of this effect varies between government and private banks. To compare the effect of using the (V. 17 virginal ) SPSS The study relied on use Distribution of averages f distribution and application of MANOVA table it was the application of computer – mediation automation . Has been reached to a group of the most important conclusions instability of the banking system, which is necessary for the flow of economic activity and protect it from the economic consequences and the weakness of the effect of monetary policy instruments on the banks of the study sample indicators. The study recommended that the Central Bank is working on the development of financial and banking institutions and institutions that deal with these markets and the development of financial supervisory and regulatory role of the central bank on the banks needed to support the stability of the banking.