The Role of the Banking Sector in Stimulating Financial Markets: An Analytical Study in the Iraqi Stock Exchange

The banking sector is a crucial cornerstone of a country's economic development, as it is vital in providing the necessary funds to other entities, such as economic units. These funds primarily come from the deposits made by the state, institutions, and individuals. These deposits are regarded as funding sources when the economic entity needs capital. This is achieved by issuing securities in the financial market, allowing the economic entity to expedite the process of obtaining funding based on the value of the assets and the borrower's creditworthiness. Hence, the banking sector serves as a crucial economic and financial entity, exerting a substantial influence on bolstering the financial market's performance using market indicators. This study, focusing on the Iraqi Stock Exchange, aims to investigate the banking industry's impact on the promotion of financial markets. An analytical technique was used to analyze data obtained from a sample of banks registered in the Iraq Stock Exchange. The findings indicate a correlation between the banking industry and the financial market.