Analyzing the Role of Social Banking in Reducing Financial Conflict between Banks and Manufacturing Enterprises (Case Study: Qarz al-Hasna Resalat Bank)

Amiri, Mohamad; Radfar, Reza; Faezy Razi, Farshad

doi:10.22034/jifb.2022.325554.1319

Analyzing the Role of Social Banking in Reducing Financial Conflict between Banks and Manufacturing Enterprises (Case Study: Qarz al-Hasna Resalat Bank)

Document Type : Original Article

Authors

mohamad amiri ¹

reza radfar ¹

farshad faezy razi ²

¹ Department of Management and Economics, Islamic Azad University Science and Research Branch, Tehran, Iran

² Department of Industrial Management, Faculty of Management, Semnan Branch, Islamic Azad University, Semnan, Iran

https://doi.org/10.22034/jifb.2022.325554.1319

Abstract

Bank credits should be provided to support production and vulnerable groups in the form of small loans in small and home-based businesses, but most of the financial institutions' resources are spent on non-priority sectors. On the one hand, banks want to fulfill their social obligations by providing services in the context of social banking, and on the other hand, they want to maximize their profits, and for this reason, they are faced with a dual mission and financial conflict with small enterprises. And they must find a way to resolve this conflict. Therefore, in this article, while systematically reviewing research and in-depth interviews with experts, the role of social banking in reducing the conflict of financial interests between banks and manufacturing firms is analyzed. The results showed that with the bank moving toward social banking and fulfilling social responsibilities, the conflict of financial interests between banks and manufacturing firms through financing the banks, securing the financial benefits of enterprises, and, consequently, securing long-term benefits of all customers will be reduced.

Keywords

Social banking

Financial conflict of interest

Manufacturing firms