This research gains its importance from the importance of the subject of financial stability because of the latter’s impact on the decisions of policy makers in the Iraqi economy, as the research aims to know the level of financial stability enjoyed by the Iraqi banking system and the extent of its ability to confront potential financial crises, as well as knowing the impact of some Macroeconomic variables (monetary policy, fiscal policy, trade policy, and environmental and climate changes) in the stability index, by analyzing the indicators of the selected variables and their role in achieving financial stability, as this research was built on the hypothesis that The selected macroeconomic variables have an impact on the financial stability index in the Iraqi economy, and these variables affect the level of financial stability according to the policies that are implemented by the economic authorities، In order to achieve the research objectives and ensure the validity of the hypotheses upon which the researcher’s work was based, the researcher worked on constructing an aggregate index of financial stability based on a set of indicators (banking indicators, macroeconomic indicators, and Iraqi stock market indicators) that express the level of financial stability, using the Altman model. (Z-Score). The research also relied on the inductive approach to demonstrate the theoretical framework of financial stability and the economic variables specified for it, as well as adopting the deductive approach to determine the impact of the variables. Determined economic financial stability using the autoregressive distributed lag (ARDL) model based on the statistical program (Eviews.9),The research reached a set of results, the most important of which is that there is a cointegration relationship between macroeconomic variables (monetary policy, fiscal policy, trade policy, environmental and climate changes) and the financial stability index , The research recommended the need to follow economic policies that are consistent with the prevailing economic situation in Iraq in order to serve the achievement of the highest possible level of financial stability. The research also recommended the need to pay attention to water resources and agricultural components that help diversify sources of income for the Iraqi economy.