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The Impact of Economic Growth on Credit Risk of Iranian Banks; Evidence from Private and Public Banks
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Hojjat Talebi1   , Habib Aghajani *2 , Zahra Karimi Takanlou1 |
1- Department of Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
2- Department of Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran , aghajani1249@gmail.com |
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Abstract: (4 Views) |
Granted facilities constitute the largest asset item in the country's banking network, which is also the largest source of credit risk. In fact, credit risk, which means the possibility of non-repayment of facilities, is one of the most important risks facing the country's banks, which are faced for various reasons, including the lack of credit standards, poor management of the facility portfolio, and lack of attention to economic changes. Despite the importance of managing this risk, we still witness high credit risk for the country's banks. Therefore, it is essential that banks consider appropriate methods for measuring credit risk, manage it using standard methods, and consider the necessary capital to cover it. Therefore, the present study measures risk in the banking system in public and private banks and its impact on economic growth during the years 1390-1402 using the generalized system moment method. The results of the study show that the first lag of credit risk, capital adequacy, liquidity, and capital quality have a positive effect on credit risk, and economic growth and bank assets have a negative effect on bank credit risk. |
Article number: 2 |
| Keywords: Credit risk, banking system, and economic growth |
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Full-Text [PDF 1008 kb]
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Article type: Research |
Subject:
Special
Received: 2026/04/22 | Accepted: 2026/08/14
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