The dynamic impact of monetary policy variables on bank liquidity...An analytical study of a sample of Iraqi banks for the period from 2006 - 2022

Abstract

Bank liquidity and its relationship to monetary policy variables are among the important topics that have an impact on the Iraqi economy. The changes that occur in bank liquidity are affected by one or all of the monetary policy variables in the dynamic movement between these variables. Bank liquidity has an impact in dealing with economic situations of inflation or recession. An increase in bank liquidity has a role in providing financing for many investment and infrastructure projects through granting credit and other banking services, and this has an impact on increasing production, financial stability, and achieving monetary policy goals. Banking liquidity is the focus of attention and scrutiny of many researchers, but in most cases their auditing thought and scientific research have neglected the process of studying at these two levels, that is, the overall level and the effects that monetary policy variables can have on banking liquidity and comparing these results with the effects that can be achieved. Monetary policy variables in bank liquidity at the micro level for each bank individually. Hence, the monetary policy maker must take these two matters into account when planning the monetary policy and using its tools, mechanisms and variables, completely and partially, and then the picture is complete for him in order to achieve the objectives of monetary policy in achieving monetary and financial stability and ensuring A unified impact of monetary policy measures in influencing bank liquidity at the macro level of the banking system as a whole and the micro level of each bank separately. Thus, banks are within the monetary policy directions and a means of creating financial and monetary stability in the Iraqi economy