Investigating the Formation of the Phenomenon of Disharmony in Iranian Banks and Providing the Solutions to Deal with it

Vahid Shahabi (), Seyd reza Tahami Pour (), Ali Shahabi () and Mohammad Amiri ()
Additional contact information
Vahid Shahabi: Assistant Professor of Industrial Management, Tehran University of Science and Research
Seyd reza Tahami Pour: Master of Business Administration, Tehran University of Science and Research
Ali Shahabi: Assistant Professor of Technology Management, Tehran University of Science and Research
Mohammad Amiri: PhD in Industrial Management, Tehran University of Science and Research

Quarterly Journal of Applied Theories of Economics, 2023, vol. 10, issue 4, 173-204

Abstract: The imbalance in the banking system and the unhealthy flow of liquidity are unfavorable for the banking system and dangerous for the country's macroeconomics. Continuing this trend will bring about the possibility of bank bankruptcy and, as a result, heavy consequences for the macroeconomy, so controlling the imbalance of banks is significant. Various research studies have been conducted regarding the reasons for banks' disharmony, and their approach was to examine the problem statically. This is even though the effects of banks' imbalances are formed over time, and the impact of this phenomenon on other macro variables is dynamic. Therefore, in the present research, solutions were presented to solve the problem of banks' imbalances by applying the system dynamics approach. The research results showed that in the long term, weakness in internal supervision and weak corporate governance structure in banks, weakness in external supervision and Appeasement with high-risk banks, as well as government budget deficit and pressure on banks have the most significant effect on increasing banks' imbalances. Therefore, paying attention to policies such as boldly reforming the management structure, improving the conditions of corporate governance by banks, managing the budget deficit by the government, and improving the supervision of banks by the Central Bank is very helpful

Keywords: Bank imbalance; inflation; system dynamics (search for similar items in EconPapers)
JEL-codes: E44 E58 G21 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ecoj.tabrizu.ac.ir/article_17642_1683af17f1c425a0e42fc3b85150ca39.pdf Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:qjatoe:0326

Access Statistics for this article

Quarterly Journal of Applied Theories of Economics is currently edited by Sakineh Sojoodi

More articles in Quarterly Journal of Applied Theories of Economics from Faculty of Economics, Management and Business, University of Tabriz Contact information at EDIRC.
Bibliographic data for series maintained by Sakineh Sojoodi ().