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Strategic Analysis of Non-Performing Loans in the Iranian Banking System: A Game Theory Approach
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Hossein Seilsepoor1   , Mohammad javad Mohagahnia2 , Maghsoud Amiri3 , Seyed Ali Ayazi4 |
1- PhD Student, Department of Finance and Banking, Faculty of Management and Accounting Allameh Tabataba'i University , h_seilsepour@atu.ac.ir
2- Assistant Professor, Department of Finance and Banking, Faculty of Management and Accounting Allameh Tabataba'i University
3- Professor, Department of Industrial Management, Faculty of Management and Accounting Allameh Tabataba'i University, Tehran, Iran
4- PhD, Department of Industrial Management, Faculty of Management and Accounting Allameh Tabataba'i University, Tehran, Iran |
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Abstract: (124 Views) |
The increase in non-performing loans (NPLs) poses a significant challenge to the Iranian banking system, potentially leading to economic crises and bank bankruptcies, thereby adversely affecting the financial stability and creditworthiness of banks as well as public trust. This research employs content analysis and expert interviews to identify the necessary needs and actions. Utilizing game theory and graph models, the study examines the equilibrium among key players, including banks, borrowers, the government, regulatory bodies, investors, and international organizations. The findings indicate that the current equilibrium is suboptimal, necessitating changes in the preferences of the players to achieve a desirable balance.Banks must enforce stricter debt collection and restructuring policies to enhance their liquidity and financial stability. Borrowers should seek debt counseling, while the government and regulatory bodies need to draft new regulations and establish debt insurance funds. Investors should mitigate their financial risks through precise risk analysis and diversification of investments. International organizations are urged to promote international standards and support structural reforms.This research aids policymakers in gaining a better understanding of the interactions among the players and in designing more effective policies to manage non-performing loans.
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Article number: 1 |
| Keywords: Non-Performing Loans, Game Theory, Graph Model, Interaction Among Stakeholders |
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Full-Text [PDF 1181 kb]
(43 Downloads)
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Article type: Research |
Subject:
Special
Received: 2024/09/22 | Accepted: 2024/12/2 | Published: 2025/05/26
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