Abstract
The research aims to study and test the relationship between the development of the use of banking digitization methods and their impact on the reserves of commercial banks, as the world has witnessed major and rapid developments during recent decades in the use of electronic systems and methods in the banking sector in Iraq in particular and the world in general. The research has relied in its model on the main variables that It witnessed the use of digital technology represented by the RTGS total settlement transfer system and ACH electronic instruments, in addition to C-ACH clearing transfers and CT credit transfers in Iraq for the period 2015-2020. The results of the ARDL test showed that the increased use of banking digitization had a positive impact on increasing the reserves of commercial banks, especially electronic instruments (ACH) and credit transfers (CT), and this is consistent with economic theoretical propositions. The research concluded that the shift towards using banking digitization will contribute to a positive impact on the reserves of commercial banks, which increases the ability of these banks to possess surplus reserves that enable them to expand in granting bank credit. The research recommends that the monetary authorities expand the development of electronic systems for managing the monetary system with commercial banks, and oblige commercial banks to use modern electronic systems that make it easier for both central banks and commercial banks alike to provide banking services to customers more easily.
