Providing a Framework for Identifying and Analyzing the Factors Affecting Banking Health

Authors

1 Associate Professor, Department of Islamic Economics, University of Qom, Qom, Iran

2 Associate Professor, Department of Management, University of Qom, Qom, Iran

3 PhD student, Islamic Economics, Qom University, Qom, Iran

Abstract

Various components affect the financial health of banks. This article seeks to identify and analyze the factors affecting the financial health of banks. The current research is applied in terms of orientation and quantitative in terms of methodology. In this research, quantitative techniques have been used for data analysis. Fuzzy Delphi was used to screen the components and Fuzzy Dimetal was used to evaluate the effectiveness of the components. The theoretical community was experts in the field of banking and sampling was done in a judgmental way. To collect data, background review, fuzzy screen questionnaires and effectiveness assessment were used.
Fourteen components have been extracted from the background review and theoretical foundations. These components were screened with fuzzy Delphi and four components had a fuzzy number less than 0.7 and were removed. Ten components were analyzed from the point of view of effectiveness and effectiveness with fuzzy Dimetal technique. The components of rules and regulations, transparency, prohibition of usury and fairness of all relationships have the greatest net effect. One of the necessary tools to realize effective supervision in the banking network is to create transparency, disclose information and provide proper access to the latest data and information. In this case, experts specializing in bank analysis can monitor the banks' activities. In the banking industry, which is an industry based on trust, it is necessary to provide extensive supervision in order to maintain this trust, establish stability and prevent crises and bankruptcy. The health of banks mainly depends on compliance with the standards of capital adequacy, asset quality and profitability, which are greatly influenced by information transparency and regulations.

Keywords

References

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