srjebmSRJEBMSRJEBM2788-9505https://doi.org/10.47310/srjebm.2022.v02i02.022Investment Policy through Financial Leverage and Its Effect on the Exchange between Risk and Return in a Sample of Iraqi Commercial BanksRaheem A.MohammedKarbala Technical Institute, AL-Furat Al-Awsat Technical University Karbala, IraqThe research dealt with the investment policy in financial leverage and its impact on risk and return in eight Iraqi commercial banks, for a period of eight years (2014 to 2021), by knowing the extent of the impact of the investment ratio in financial leverage on bank liquidity, which was expressed by the indicator of the borrowing ratio and bank return, The research problem was formulated with the following question: What is the ability and effectiveness of leveraged investment policies in influencing risk and return and solving the problem of the conflict between risk and return. The most significant of the research's conclusions is that investment ratios in financial leverage have an impact on the risk and return indicators that were accepted. The financial manager of the bank can achieve the exchange between risk and return according to their research indicators by following a moderate investment policy by investing in cash, temporary investments and receivables. While the researcher recommended focusing on investment policies in financial leverage in banks as a vital and strategic issue in relying on loans that represent indebtedness in directing investments and exploiting and utilizing the proceeds of funds without compromising the bank’s credit reputation and then achieving the goals for which it arose.