The assessment of Financial stability in Islamic and commercial Bank (A case study: The banks of Islamic Republic of Iran)

In recent decades, the stability of finance, as an economical system goal, is noticed more than before. Also the good tactics of Islamic banks against the recent world – wide crisis, has attracted much attention to itself. However banking system and its promoting is one of the important discusses in our country. Noting development of Islamic banking in Iran and importance of stability and safety of banking system in this country, the aim of this study is to assess and compare the financial stability in Iranian banks, and also clearing the effective factors on it. Paying attention to the results of z-score indicators, Tejarat, Tosehe Saderat and Mellat banks from top to end have the highest level of financial stability and Sannat o Madan, Karafarin, and Parsian banks have the lowest level of financial stability. The comparison result between the state banks (governmental banks and private banks showed that the state banks have more stability than private banks and this causes to focus on increasing the financial stability indicators in private banks. Also in estimation of effective factors on banks financial stability, the coefficient variable of banks, the ratio of debt to finance, ratio of expenses to income, have negative effect on stability and the variety of income can decrease the risk of financial problems. Macroeconomic variables such as negative inflation, negative currency growth and coefficient variables of currency growth of national gross (pure) production are assassed.

financial stability, Islamic banks, bank variables, macroeconomic variables.