Monetary & Financial Economics

Abstract This study examines the structure and evolution of criminal protection of the monetary system in Iranian law, emphasizing its gradual transformation from regulatory safeguards to security-oriented responses. Employing a doctrinal–analytical methodology, the research analyzes statutory provisions, judicial interpretations, and institutional reforms governing the monetary and financial domains, particularly under the Monetary and Banking Law of 1972, the Non-Banking Financial Market Regulation Act of 2004, the Islamic Penal Code (Book V, 2013), and the Law on the Punishment of Disruptors of the Economic System (1990, as amended until 2021).
Findings indicate a three-tiered framework of criminal protection in Iranian monetary legislation: (1) Preliminary protection, characterized by mild criminal responses such as fines or short-term imprisonment for minor monetary or foreign exchange violations, primarily aimed at behavioral correction and maintenance of transactional order; (2) Intermediate deterrent protection, focused on safeguarding the credibility of legal payment instruments through criminalization of acts such as forgery, falsification, and counterfeiting of coins, banknotes, and negotiable instruments, with penalties ranging from one to ten years; and (3) Aggravated protection, where monetary offenses escalate into security-level crimes under the Law on Economic Disruptors, encompassing large-scale or system-threatening conduct—such as major currency smuggling or organized counterfeiting—punishable by long-term imprisonment, extensive confiscation of assets, or even capital punishment in cases constituting corruption on earth (efsad fel-arz).
The paper clarifies the conceptual ambiguity of “disruption” (ekhalal) by distinguishing between its behavioral and consequential dimensions. It argues that disruption must be assessed in terms of both mens rea (criminal intent) and the systemic impact on monetary stability, calling for quantitative criteria and expert-based evaluation. Institutionally, the 2023 Central Bank Act strengthens the supervisory and preventive capacities of the monetary authority by providing for specialized judicial and disciplinary mechanisms to address financial crimes.
The study concludes that the effectiveness of Iran’s criminal monetary policy hinges upon institutional coordination, preventive oversight, and a balanced distinction between economic and security rationales. Accordingly, it recommends: (1) joint issuance of operational guidelines by the Central Bank and the Judiciary to define measurable indicators of disruption; (2) amendment of Article 526 of the Islamic Penal Code to clearly differentiate “intent to disrupt” from “profit-seeking motivation”; (3) establishment of institutional monitoring mechanisms for high-risk monetary transactions; and (4) specialization of Revolutionary Courts to ensure interpretive consistency in monetary and foreign exchange offenses. Overall, the findings demonstrate that while Iran’s legal framework for the criminal protection of the monetary system is comprehensive, it still requires conceptual clarification, procedural standardization, and institutional integration to transition from reactive punishment to preventive governance in safeguarding monetary stability and public trust.

Abstract Bank profitability is one of the key indicators of the soundness and resilience of the banking system, playing an important role in capital strengthening, shock absorption, and the continuity of financing for the economy. This study examines the non-linear effect of liquidity risk on the profitability of Iranian commercial banks. To this end, panel data for 12 banks listed on the Tehran Stock Exchange over the period 1382–1401 (2003–2022) are compiled, and return on assets (ROA) is used as the profitability measure. Liquidity risk is proxied by the ratio of total loans to total assets. In addition, credit risk, first differences of income diversification, the ratio of administrative expenses to assets, and bank size are included as control variables. After confirming cross-sectional dependence and applying the second-generation CIPS unit root test, the Panel Smooth Transition Regression (PSTR) model is employed to test for non-linearity. Linearity tests indicate that a simple linear specification cannot capture the behavior of liquidity risk, while a PSTR model with two thresholds and three regimes based on bank size provides a better fit. The results show that the effect of liquidity risk on profitability is negative and statistically significant for small and large banks, but positive for medium-sized banks; in other words, there exists an intermediate level of liquidity risk at which a more active use of liquidity capacity translates into higher profitability. Credit risk reduces ROA across all regimes, whereas changes in income diversification play a limited, mainly control role. Overall, the findings imply that prudential policies and liquidity risk management should be tailored to bank size, alongside simultaneous control of credit risk, to sustain bank profitability in Iran.

Abstract This study aims to investigate the impact of electronic banking infrastructure and performance on the cost of funds in 57 branches of Tejarat Bank in East Azerbaijan Province. For this purpose, monthly data for the year 2023 (1402 in the Iranian calendar) were analyzed using dynamic panel regression and the Generalized Method of Moments (GMM).
The results indicate that the expansion of electronic banking alone does not necessarily guarantee a reduction in the cost of funds, and its effect depends on the type of tools used and the quality of their utilization. Increasing the number of ATMs, as a key component of electronic banking infrastructure, has a significant negative effect on the cost of funds. However, an increase in the volume and especially the average amount of ATM transactions—mostly cash withdrawals—can lead to a higher cost of funds.
Moreover, merely increasing the number of registered mobile banking users and expanding point-of-sale (POS) terminals has a neutral or even increasing effect on the cost of funds. This is mainly because a portion of mobile banking accounts remain inactive, and POS terminals generate relatively high settlement and maintenance costs without attracting stable and low-cost deposits. In terms of performance indicators, the only electronic banking tool that shows a significant and stable cost-reducing effect—both in the number and the average amount of transactions—is active mobile banking. Active users tend to maintain more stable balances in current and Qard-al-Hasanah accounts and help reduce branch operational costs.
Overall, the ratio of current accounts to total deposits and the loans-to-resources ratio are among the most important factors in reducing the cost of funds.

Abstract Although various studies have examined the economic effects of money laundering, there is a lack of studies, especially in the country, on the impact of shocks resulting from economic sanctions on money laundering. Therefore, in this study, the impact of negative shocks of economic sanctions on the volume of money laundering in Iran was investigated using a structural vector autoregression (SVAR) model during the period 1994-1999.
The results showed that shocks of -5, -10 and -20 percent in crude oil export revenue increase the volume of money laundering in Iran by a maximum of 3.66, 4.67 and 7.63 percent, respectively. Also, shocks of -5, -10 and -20 percent in non-oil exports increase the volume of money laundering in Iran by a maximum of 2.24, 3.26 and 6.24 percent, respectively. In addition, shocks of -5, -10 and -20 percent in capital and intermediate goods increase the volume of money laundering in Iran by a maximum of 1.11, 2.12 and 5.22 percent, respectively. On the other hand, shocks of +5, +10 and +20 percent in exchange rate increase the volume of money laundering in Iran by a maximum of 3.01, 5.72 and 12.97 percent, respectively. Due to economic sanctions, economic growth, decline, exchange rate fluctuations, increases, inflation rates, increases and income inequality also increases, money laundering grows as a natural reaction of the informal market.
Therefore, solutions must be simultaneously economic (controlling exchange rates and inflation), social (reducing income inequality), institutional (regulations and supervision), and technological (artificial intelligence and blockchain). Only with this combination can the volume of money laundering be reduced and public trust and sound investment be strengthened.

Abstract 1- Introduction
With the rapid growth of information and communication technology, electronic banking will play a central and important role in various fields. In this framework, determining the impact of the expansion of electronic banking on banks' costs can be very important. The use of electronic banking tools has positive and negative effects on the productivity of bank branches and causes the final effect of each of these tools to be different. This research examines the role of electronic banking on productivity in 16 bank branches in Yazd province in the period of 1396-1400.
2- Theoretical framework
Electronic banking is the optimal integration of all activities of a bank. In other words, by using new information technology based on banking processes and in accordance with the organizational structure, it provides the possibility of providing needed services to customers. This type of banking provides facilities for customers to access banking services without the need for physical presence and using safe intermediaries. Also, it is the use of technology that allows bank customers and other stakeholders to interact with the bank without intermediaries and through various electronic channels.
3- Methodology
This research examines the effect of using electronic banking tools on the productivity indicators of the bank in Yazd province. Therefore, the research data has been obtained using the data provided by the bank's planning and development department, financial department, support department and human capital department; The data is extracted monthly, quarterly and annually. The statistical population of the research includes all branches (16 branches) of the bank in question during the years 1396-1400 in Yazd province.
3-1- Dependent variable
The branch productivity index consists of the combination of four main criteria. The main criteria include equipment, allocation, arrears and performance. Each of these four criteria is calculated by 2 to 5 indexers.
3-2- Explanatory variables
Explanatory variables are: electronic banking tools (modern documents and cards), human capital (number of employees, educational qualifications and service history), building (age of branches), deposit interest rate. In the general division of bank documents, they are: small, modern and card documents. Modern documents and cards are known as electronic banking tools.
3-3- Research model
The research model is as follows:
(1) Pr = f (Hc, Eq, Eb, Er, Ek)
where Pr is the productivity index, Hc is the vector of human capital variables, Eq is the vector of building and equipment quality and quantity variables, Eb is the vector of electronic tools use indicators, Er is the interest rate vector, and Ek is the vector of small documents.
4- Discussion
The results of Model 1 show that the amount of modern documents has a significant relationship with productivity and has a very small but negative effect on the equipment index. Also, card documents and small documents do not have a significant relationship with the equipment index. The number of manpower, service history and education level of employees have no significant relationship with the equipment index. The age of the building has a positive and significant relationship with the equipment index. The deposit rate also has a negative and significant relationship with the equipment index. In model 2, there is no significant relationship between the number of modern documents and the card with the allocation index. Also, the number of micro documents has a positive and significant relationship with the deposit allocation index. In addition, there is no significant relationship between high education degree and employees' service history with allocation index. In model 3, there is a positive and significant effect between the amount of modern documents and the arrears index. But the amount of card documents has no significant relationship with the arrears index. Also, micro documents do not have a significant effect on the arrears index. In addition, the high level of education and the number of employees have a negative effect on the arrears index. But the service history does not affect the arrears index. In model 4, modern documents have a significant and negative relationship on the performance index. On the other hand, micro documents have a significant and positive relationship on this index. There is a positive and significant relationship between the average level of education and performance index. The deposit interest rate also has a negative effect on the performance index, and the age of the building does not affect the performance index. In the 5th model of the research, the general and summarized mode is 4 productivity indicators under the index of the total score, and the title of productivity is determined from the total score. According to the targeting of the studied bank in the indicators affecting productivity, finally, the number of documents has been used as a factor affecting productivity. The number of modern documents and cards do not have a significant relationship with the productivity index. Therefore, the null hypothesis is not rejected and it cannot be said that electronic banking documents have been able to influence the productivity of the bank. Among the variables of education degree, service history, building age and deposit rate, only service history has a significant relationship with the productivity index, and it cannot be said that these variables play a significant role in the bank's productivity.
5- Conclusion and Suggestions
According to the findings of the research, it is not possible to say that electronic banking has a significant relationship with the bank's productivity, and this shows that electronic banking has not been able to reduce banking costs and create profitability as it should have been. Therefore, the main hypothesis of the research regarding the impact of electronic banking on productivity indicators can be rejected. Therefore, according to the research results, the most important suggestion is: Increasing the quality of providing electronic banking services by updating equipment and software.

Abstract In today's era, the wheels of Iran's economy revolve around banks, and this clearly shows the key role of banks in providing financial resources for economic enterprises. The current research was conducted with the aim of designing a policy model for the transparency of resource allocation in the banking system of Iran. The inductive research approach is based on data theory. The statistical population was experts and policy makers of the banking system and management professors, who were selected as the sample size using the saturation principle and the snowball sampling method. Semi-structured in-depth interviews were used to collect data. Reliability was confirmed using the agreement coefficient of two coders and the Kappa coefficient, whose value was 0.742. Max Kyoda software was used for data analysis. The results included 173 open codes in 15 components and 6 categories. 3 components and 55 open codes for causal factors, 2 components and 29 open codes for the central category, 4 components and 39 open codes for the strategy category, 2 components and 19 open codes for the consequences category, 2 components and 10 open codes for the context category, and 2 components and 21 open codes for the intervention category. It was Gerha. Based on the results, it is very important to design metrics and indicators related to resource allocation transparency in the banking system of Iran.

Abstract Today’s behavior regarding risk control and using appropriate management tools can strengthen banks' performance in face of financial challenges. The aim of present study is to prioritize behavioral biases of managers on liquidity control of banks in Iran. In order to achieve this goal, a questionnaire was designed using AHP approach and completed by 50 bank managers. In designed questionnaire, three liquidity control criteria in Iranian banks, influential behavioral biases, and control variables for behavioral biases were compared in pairs. Then, using AHP approach, decisions made by bank managers were prioritized. The main results of study showed that among liquidity control criteria, the advertising and deposit attraction sub-criterion is affected with a higher priority than behavioral biases. Also, among the behavioral biases affecting the liquidity control criterion, the mental accounting sub-criterion had a higher priority in affecting liquidity control criterion than others. Among criteria for controlling behavioral biases, sub-criteria of managerial experience and manager gender had a higher priority on behavioral biases, which indicates that bank managers tend to classify and code liquidity in different categories in liquidity control through advertising and deposit attraction. In general, the results show role of different financial manager experience and gender of managers more clearly. Therefore, bank planners and heads can benefit from the results of the study in better control of bank liquidity.