The banking sector is currently considered as the base of a free economy. In addition, it is a major source of financing for the development and growth of national economy especially when the infrastructure of this sector is strong and well planned، knowing that the banking sector is considered as a main tool of credit process.After the fall of the political regime in Iraq (9/4/2003)، Iraq aspired to reform the legal and regulatory functions of banking sector after being exposed to the interference of the state in its affairs for the purpose of finding a banking system capable of meeting the requirements of a more liberalized economy in addition to enhancing the role and status of private placements in Iraqi economy.Within this framework، the Central Bank of Iraq Law No. (64) of 1976 was cancelled and two new laws were issued، the first is devoted for the banks in 2004 and the second is planned for the Central Bank in 2004 to constitute a legal base for achieving these objectives and leading to a new phase after abandoning the strategies that were preventing private sector or restricting the practice of banking activity. This stage requires faciliting the way for the private sector to practice banking activity under the control and supervision of the Central Bank of Iraq to take its efficient role development of the national economy. For the above، we will rely on the analysis of legal texts in order to study the subject in all its aspects.