Quarterly Studies in Banking Management and Islamic Banking

Prioritization of Iran’s International Bank Payment Methods by Analytical Hierarchy Process (AHP) Approach

Document Type : Original Article

Authors

Hamed Farahmand Moein 1
Mohammad Ebrahim Samavi 2
Emad Koosha 3

1 PhD Student in Economic Sciences, Payame noor University, Tehran, Iran

2 PhD Student in Financial engineering, Islamic Azad University, Science and Research Branch, Tehran, Iran

3 PhD Student in Financial engineering, Islamic Azad University, Ghazvin Branch, Ghazvin, Iran

https://doi.org/10.22034/jifb.2019.93915
Abstract
Since the start of the massive banking sanctions in 2011, the effectiveness of the previous methods has become difficult. In this research by creating a questionnaire, views of former directors of Iran's banks on comparing conventional methods of international bank payment have been collected from the perspective of six indicators and analyzed by AHP method. To assess the validity and reliability of the questionnaires, the Cronbach's alpha test is used. In the first distribution of the questionnaire, Cronbach's alpha was 0.7 and by redistributing Cronbach's alpha was 0.73, indicating the reliability of the model, the suitability of the questionnaire questions and their low correlation with each other. The results of the model show that according to international and indigenous standards, the international payment system of Iran should prioritize the methods including open account, advance payment, clean draft, letter of credit, bank guarantee transfer and documentary collection, respectively.

Keywords

Payment Methods
International and Indigenous Standards
AHP
Quarterly Studies in Banking Management and Islamic Banking
Volume 4, Autumn
Winter 2019
Pages 85-114

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