Abstract

It is returns a goal sought by all banks because it will bring them an income under way and that guarantees them survive in competition with other banks, and here came this research to highlight the statement after capital and liquidity and the exchange rate, inflation and the interest rate on the profitability of the bank. And that by relying on five commercial Iraqi banks: the Bank of Baghdad, the Iraqi Investment Bank, Bank of the Middle East, as well as the Rafidain Bank and Rasheed Bank, for the period from 1998 to 2011. The research came out a set of conclusions of the most important of the paid-up capital and the interest rate is linked to a positive relationship with the banking profitability level (ROA, ROE) and is associated with exchange rate and the inflation rate and the size of the liquidity inverse relationship with the bank profitability, as the research presents proposals Perhaps the most important of which is the establishment of units administrative specialist for follow-up exchange rates and fluctuations in inflation movement, the interest rate in order to achieve the risk of financial crises and risks of external and internal variables and banks administrations should ensure to make sure this issue and is working on the review and evaluation of this system on a regular basis so as to make sure of the relevance and effectiveness