The Determinants of Banking Crises in Iranian
The banking structure in Iran has undergone dramatic changes for the past three decades going from a mixed private-public banking system to a complete state-owned banking system. Although banking crisis such as bank panic and bank run has never been observed in Iran, the money market pressure index...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2013-03-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_913_8821f85de929853ceac9ee919f73f516.pdf |
| _version_ | 1797375640380375040 |
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| author | Saeed Moshiri Mohammad Nadali |
| author_facet | Saeed Moshiri Mohammad Nadali |
| author_sort | Saeed Moshiri |
| collection | DOAJ |
| description | The banking structure in Iran has undergone dramatic changes for the past three decades going from a mixed private-public banking system to a complete state-owned banking system. Although banking crisis such as bank panic and bank run has never been observed in Iran, the money market pressure index shows that the banking system has experienced crisis in various times. In this paper, we use the banking crisis data derived by Moshiri and Nadali (2010) to estimate the determinants of the banking crisis in Iran, using a Logit model for the period 1971-2008. The estimation results show that inflation, short term interest rate, and the ratio of domestic credit to private sector to GDP are the main factors affecting banking crisis in Iran. Moreover, the results indicate that the relationship between inflation rate and the banking crisis is U shape. The exchange rate does not have a significant effect on the banking crisis as the Iranian banking system is not heavily involved in the international financial markets and is not strongly connected to the international banking system. |
| first_indexed | 2024-03-08T19:27:20Z |
| format | Article |
| id | doaj.art-311c096979694bd2acf553b66f7c340b |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:27:20Z |
| publishDate | 2013-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-311c096979694bd2acf553b66f7c340b2023-12-26T07:58:06ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532013-03-011348127913The Determinants of Banking Crises in IranianSaeed Moshiri0Mohammad Nadali1PhD, EconomicsPhD, Economics, Researcher at Central Bank of IranThe banking structure in Iran has undergone dramatic changes for the past three decades going from a mixed private-public banking system to a complete state-owned banking system. Although banking crisis such as bank panic and bank run has never been observed in Iran, the money market pressure index shows that the banking system has experienced crisis in various times. In this paper, we use the banking crisis data derived by Moshiri and Nadali (2010) to estimate the determinants of the banking crisis in Iran, using a Logit model for the period 1971-2008. The estimation results show that inflation, short term interest rate, and the ratio of domestic credit to private sector to GDP are the main factors affecting banking crisis in Iran. Moreover, the results indicate that the relationship between inflation rate and the banking crisis is U shape. The exchange rate does not have a significant effect on the banking crisis as the Iranian banking system is not heavily involved in the international financial markets and is not strongly connected to the international banking system.https://joer.atu.ac.ir/article_913_8821f85de929853ceac9ee919f73f516.pdfbanking crisislogit modelbanking systemiran |
| spellingShingle | Saeed Moshiri Mohammad Nadali The Determinants of Banking Crises in Iranian Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī banking crisis logit model banking system iran |
| title | The Determinants of Banking Crises in Iranian |
| title_full | The Determinants of Banking Crises in Iranian |
| title_fullStr | The Determinants of Banking Crises in Iranian |
| title_full_unstemmed | The Determinants of Banking Crises in Iranian |
| title_short | The Determinants of Banking Crises in Iranian |
| title_sort | determinants of banking crises in iranian |
| topic | banking crisis logit model banking system iran |
| url | https://joer.atu.ac.ir/article_913_8821f85de929853ceac9ee919f73f516.pdf |
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