Abstract

The importance of the research is that the banking system occupies a privileged position in the economy, as it is a link between the units that own the funds and directs them to the units that are in need of those funds. Therefore, the more bank loans granted to the private sector to finance its investment operations, it works to reduce unemployment rates. The current research tries to answer the following question: Does the banking system in Iraq have a positive role in influencing unemployment rates through bank loans provided by banks to the private sector to finance its investment operations? It is represented by the study of the Iraqi economy, and through the standard model in which the Ardl model was used, and also the conversion of data to quarterly through the Eviews program. The research, through the standard model used, concluded that there is no relationship between bank loans and unemployment rates in Iraq, and this result is logical in the economy Iraqi because most of the bank loans go to the consumer and not the investment side, especially the loans of agricultural and industrial development institutions are granted loans for a specific productive activity, but they end with consumer spending and that most of the consumer goods are imported from outside the Iraqi economy and therefore have no impact on the development of projects and Then operate the manpower