This study aims to examine the impact of certain banking concentration variables on banking stability in the Iraqi banking sector. The research is based on the hypothesis that there is a positive relationship between banking concentration indicators and banking stability in the Iraqi banking sector during the study period. Both inductive and deductive methodologies were employed, involving data collection and analysis, along with quantitative econometric techniques to determine the effect of banking concentration on banking stability in Iraq. The Autoregressive Distributed Lag (ARDL) model was applied using EViews 12 to test the hypothesis. The study reached a set of conclusions, the most important of which are: There is a long-term inverse relationship between assets (X1) and the capital adequacy ratio (Y1). There is a direct relationship between the capital adequacy ratio (Y1) and the deposits index (X2). There is a long-term inverse relationship between capital adequacy (Y1) and credit (X3). The study concluded with a set of recommendations, the most important of which are: Iraqi banks should develop appropriate marketing mechanisms for their services to increase their assets and provide better services, which will positively reflect on the banking sector. Small-sized commercial banks with limited assets should voluntarily adopt a bank merger approach to address challenges, especially in the current competitive environment, in order to expand their capital base and improve capital adequacy.
Al-Aliyawi et al. (2025) studied this question.