Abstract

This study is trying to highlight the features of (deposits) of the banking sector and their relevance to banks and depositors and to the country’s economy ,this study was conducted on a sample of Iraqi banks and the private sector banks of Saudi Arabia for a period of 2000 – 2008 . aims to identify benefiting areas and compare the cost of deposits and return achieved about them and to compare the stable environment ( Saudi Arabia ) and unstable environment (Iraq ), the study depends on a variety of reports from Iraq stock market and Saudi financial market , and this study has in several chapters of theoretical and practical aspects of the polarized deposits from others and banking consulting , built on the assumption of major embeddable four directions subsidiary of hypotheses that ( There is a positive correlation between deposits value and banking investments ).

Also , the study found such conclusions set :-

1 – Banking system is a basic predicate and is necessary for the development of all sectors of the country as well as its contribution to achieving monetary stability in the country .

2 – Saudi banks are better and more efficient from Iraqi banks in their management of sources of financing banks .

With regard to the more important recommendation made by the researcher :-

1 – promote financial and banking institutions , which had suffered and still suffer from neglect and poor performance achieved and caused by degradation around the country .

2 – The Iraqi banks management should follow strategies integrating with other banks , both from within the country or from abroad .

3 – The need for Iraqi banks to commit with rules and regulations issued by the central bank .