An analysis of the current challenges of the banking system in Iran

Abstract

According to Iran's 20-year vision plan, the Islamic Republic of Iran should achieve the first economic, scientific and technological status at the regional level with rapid and continuous economic growth, relative promotion of per capita income and attainment of full employment. Also, according to paragraph 5 the requirements of Iran's 20-year vision plan, achieving such a position requires a continuous 8% growth in the economic sector with an emphasis on investment development, productivity enhancement, business environment improvement, and strengthening and developing the national standard system; the achievement of these goals also requires an efficient, stable, disciplined and dynamic banking system, because the country's economic system is bank-oriented and the banking industry has a significant share of the financing of our economy (Central Bank of the Islamic Republic of Iran, 2014). Nowadays, issues such as supervision, transparency, quality of regulation, fight against corruption, etc. in the banking and governance system are one of the key indicators considered internationally, this has been one of the main concerns of the people at both the micro and macro levels. At the organizational level, the purpose is to understand the actual performance of the organization's managers and the degree of success of the companies, but at the macro level, understanding the importance of responding to people and moving towards development within government has been of interest; the present paper examines a practical framework for moving the banking system in the direction of better regulation and consequently better policy-making and realization of good governance goals and its integration with the economic growth and development of Iran.