Volume 21, Issue 3 (9-2026)
J. Mon. Ec. 2026, 21(3): 385-410 |
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Bagheri Rad N, Behnamian J. An Economic–Operational Framework for Credit Risk Management in the Iranian Banking System. J. Mon. Ec. 2026; 21 (3) : 3
URL: http://jme.mbri.ac.ir/article-1-768-en.html
URL: http://jme.mbri.ac.ir/article-1-768-en.html
1- Phd student of Industrial engineering, Bu-Ali Sina University, Hamedan, Iran
2- Professor, Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran
2- Professor, Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran
Abstract: (67289 Views)
Credit risk constitutes a critical economic challenge that affects financial stability, credit market efficiency, and banking sector performance. In recent years—particularly in Iran, amid prolonged recession and high inflation—it has contributed to a substantial rise in non-performing loans (NPLs), thereby weakening banks’ liquidity positions, profitability, and allocative efficiency. This study develops an economic–operational framework for credit risk management in the Iranian banking system through the formulation of an integrated strategy matrix that incorporates two complementary dimensions: customer requirements and internal resource and process capabilities. Drawing upon a structured literature review, updated statistical evidence on the state of NPLs in Iran, and systematic identification of the drivers intensifying non-performing loans, key operational performance domains were determined and a portfolio of tailored strategies was formulated for each matrix segment. The proposed strategies were subsequently evaluated and prioritized according to their feasibility within the institutional structure of the Iranian banking system and their expected economic effectiveness in mitigating credit risk. The findings demonstrate that the framework offers actionable policy and managerial prescriptions for reducing loan delinquency and improving credit allocation efficiency. Recommended measures include designing credit packages aligned with macroeconomic conditions; implementing incentive-based mechanisms for low-risk borrowers (e.g., relaxed collateral requirements and expedited approvals); phased digitalization of credit evaluation processes and mechanized delinquency monitoring; and expansion of digital banking services. Overall, the framework contributes to strengthening financial stability and enhancing resource allocation within the banking sector, while remaining consistent with regulatory and institutional constraints.
Article number: 3
Keywords: Credit Risk, Banking Sector Performance, Financial Stability, Credit Allocation Efficiency, Operational Strategy
Type of Study: Original Research - Case Study |
Subject:
Economics
Received: 25 Feb 2026 | Accepted: 1 Jun 2026 | Published: 17 Aug 2026
Received: 25 Feb 2026 | Accepted: 1 Jun 2026 | Published: 17 Aug 2026
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