Quarterly Studies in Banking Management and Islamic Banking

Abstract Banks, as one of the most important institutions of the money and capital market, play a valuable role in economic development. Hence, the key interrelationships and connections between them are important. In this article, the effect of regulatory capital and its relationship with types of banking services and bank value will be explained. In this regard, considering the nature of domestic assets and banks compared to foreign banks at the same time, the effect of investment on types of services for income and assets and from other regulatory investments on bank value in the presence of banking services will be examined. Also, in this article, the explanation presents regulatory capital significantly with diverse services for related income, and with diversity for investment (facilities in Iran and capital assets in foreign banks). Regulatory capital can act as an alternative to diversify to reduce bank default. Introducing the value of a bank, considering the type of economic structure and the nature of the commercial activities of banks, and how to calculate it, will be important and noteworthy points in this article.

Abstract This study examines the relationship between risk governance and the performance of listed banks in Iran, by means of panel data models over the period 1397-1401. Risk governance was measured by indicators related to risk governance mechanisms (i.e. board of directors, risk committee, and chief risk officer) Bank performance was measured by "return on average assets" and "risk-adjusted return on average assets". The results of the analysis show that although there was a positive relationship between the variables of the board of directors mechanism ("board independence" & "board size") and performance, but the relationship was not significant. Regarding of the chief risk officer mechanism, all the variables of the mechanism ("chief risk officer independence", "chief risk officer stature", "chief risk officer oversight" and "chief risk officer compensation") had a positive relationship with performance, but this relationship was significant for the "chief risk officer oversight" and "chief risk officer compensation". Regarding the risk committee mechanism, the results indicate that there was a positive relationship between the "risk committee meeting", "risk committee approvals", and bank performance., And this relationship was negative for the "risk committee size" and "risk committee independence",. However, this relationship is significant for the "risk committee size". This study provides insight into the mechanisms and variables of risk governance that affect the performance of listed banks in Iran; It could be important for risk managers, bank executives, regulatory authorities, policymakers and future researchers.

Abstract Foreign financing is very important for the investment of companies. Companies are more willing to invest in periods of so-called easy money. In other words, the state of financial markets and especially the banking sector can affect the investment of companies. Accordingly, the purpose of this research is to examine the relationship between risk-taking in the banking sector and corporate investment, as well as the role of cash holding on this relationship. For this purpose, the information of a sample of 128 companies admitted to the Tehran Stock Exchange during the period 2013 to 2022 has been used. The results of data analysis using the linear regression method with panel data show that the risk-taking of the banking sector has a significant effect on corporate investment. In addition, the holding of cash by companies moderates the impact of the banking sector's risk-taking on corporate investment. In other words, companies that have more cash assets are less affected by the risk-taking of the banking sector in investment.

Abstract The aim of this study is to explore the gap in the literature on the subject by empirically examining the effect of income and asset diversification strategies on earnings management in the form of discretionary loan loss provision (LLP) and the role of banking risk as a mediating variable. The findings show that there is a positive and significant relationship between income and asset diversification strategies and LLP-based earnings management in banks. Also, the relationship between these strategies and banking risk is positive and significant. Income and asset diversification strategies have a positive and significant impact on LLP-based earnings management indirectly through the intermediary variable of bank risk. The overall analysis of the results shows that the direct and indirect effects of diversification strategies in the banking industry are associated with earnings manipulation. These findings suggest that regulators in emerging markets should increase reporting requirements in light of the increasing use of LLP-based earnings management. In addition, regulators in the banking sector should closely monitor risk levels in this area. Improving the transparency and quality of bank reporting is an expectation that will be pursued by depositors, investors, international lenders, and rating agencies.

Abstract In the country's banking system, whistleblowing as a formal and effective mechanism has not yet been fully implemented and requires the development of a model appropriate to the country's local conditions. In this study, a model of whistleblowing in the country's banking system was first presented in the qualitative part using a data-driven method. Accordingly, by conducting interviews with fourteen experts in the banking system, nine categories were identified based on the paradigm model as follows: supportive laws and policies and the creation of secure reporting mechanisms as "causal conditions", cultural infrastructure as "intervening conditions", social sensitivity as "contextual conditions", rapid and effective handling of violations and transparency as "interactive dimension", whistleblowing as a "centered phenomenon", and reducing violations and attracting capital as "consequence dimension". In the quantitative part, the model was tested by structural equation modeling. The results showed that supportive laws and policies, along with the establishment of secure reporting mechanisms, have a significant impact on whistleblowing. Also, whistleblowing significantly affects the acceleration and effectiveness of addressing violations and increasing transparency. In addition, cultural infrastructure also has a significant impact on the speed and efficiency of addressing violations and transparency. Social sensitivity to issues also plays a significant role in improving the rapid and effective handling of violations and promoting transparency. It was also found that the rapid and effective handling of violations has a significant impact on reducing violations and attracting capital. On the other hand, transparency also significantly reduces violations and increases capital.

Abstract Given the significance of violations and crimes committed by credit institutions, governments take rigorous regulatory measures, design criminal sanctions, and implement non-criminal strategies to safeguard norms in this sector. In Iran, weaknesses in legislative infrastructure, the multiplicity of regulatory bodies issuing banking licenses, the inexperience of relevant institutions in managing such criminal phenomena, and the lack of expertise in the financial supervisory body during the early stages of these institutions' criminal operations contributed to the emergence of the credit institution crisis in the country. This crisis escalated into a national security concern due to mass protests by depositors in front of government institutions and the involvement of opposition media. Ultimately, it was resolved through the cooperation of the three branches of government, the allocation of credit lines, substantial liquidity injections by the Central Bank, and the resultant inflationary burden on various segments of society. While multiple studies have examined different aspects of legal norm violations by these institutions, there has been a lack of research on the social factors contributing to this criminal phenomenon and the role of social prevention strategies. In particular, the role of citizen behavior management in responding effectively to this issue has been overlooked. This article, using a descriptive-analytical approach, aims to elucidate the role of social prevention in managing this criminal phenomenon. By analyzing past cases, interpreting the relevant legal frameworks governing central banking regulations, and drawing upon insights from social sciences, criminology, and behavioral economics, the study highlights the necessity for policymakers to address the underlying motivations of citizen behavior. It advocates for a focus on models of social choice engineering as a fundamental strategy for strengthening community-based crime prevention in the financial and banking sectors.