Human capital has become a strategically important resource for banking institutions operating in environments characterized by technological change, competitive pressure, regulatory expectations, and increasing demands for organizational sustainability. This research develops a sustainable human capital management framework for enhancing competitive advantage in Iraqi private banking institutions. The study adopts a conceptual and analytical research approach based exclusively on the supplied literature concerning human resource management, competitive performance, financial performance, sustainability, strategic alliances, technology leadership, and participatory leadership. The proposed framework integrates sustainable human resource practices, employee capability development, technology-oriented leadership, participatory management, organizational learning, and performance evaluation into a coordinated strategic architecture. The analysis indicates that human capital sustainability should not be treated as an isolated personnel function; rather, it should operate as an organizational capability connecting employee development with operational efficiency, service quality, innovation, and competitive performance. The literature further indicates that financial performance indicators can provide an important outcome dimension for evaluating whether human-resource-oriented interventions generate organizational value. The proposed framework therefore links human capital inputs, managerial processes, employee capabilities, sustainable organizational practices, and competitive outcomes. The study contributes a context-oriented conceptual model that can support Iraqi private banks in aligning human resource strategies with long-term competitive objectives while recognizing the limitations associated with a non-empirical research design.