Document Type : Article

Author

Assistant Professor, Department of Law, Faculty of Social Sciences, Payam Noor University, Tehran, Iran

10.22059/jplsq.2022.328469.2853

Abstract

Economic growth entails economic stability, and economic stability is also in the midst of stabilizing the rates and financial health that comes. Reaching this point requires monitoring the correct functioning of market factors. Therefore, the supervision of banking and monetary operations as an important part of the financial markets of the countries is a major concern of all governments. However, the conditions and limits of this monitoring are the subject of long discussions. In this paper, an analytical descriptive method has been used to examine the status of banking supervision and its adaptation to Basle's principles as a reliable international document. It was found out that banking supervision in Iran for capital adequacy, validation, transparency of banks performance and authority of the supervisory authority are weak and It does not have the protective shield to deal with financial crises and potential misuses.

Keywords

  1. Englsih

    1. A) Books
    2. Apostolik, Richard et al. (2009), Foundations of banking risk: an overview of banking, banking risks, and risk-based banking regulation, Wiley publication.
    3. Arora, Anu (2014), Banking Law, Pearson publiction.
    4. Barbara Casu, Claudia Girardone and Philip Molyneux (2015), Introduction to Banking, Pearson.
    5. Ross Cranston, Emilios Avgouleas, Kristin van Zwieten, Christopher Hare, and Theodor van Sante (2018), Principles of Banking Law, Oxford University Press.
    6. Bessis, Joël (2015), Risk management in banking, Wiley publication
    7. Crouhy, Michel (2014), The Essentials of Risk Management, McGraw Hill Professional.
    8. Choudhry, Moorad (2018), An Introduction to Banking: Principles, Strategy and Risk Management, Wiley publication.
    9. Dill, Alexander (2020), Bank Regulation, Risk Management, and Compliance, Informa Law from Routledge.
    10. Hull, John C., (2018), Risk management and financial institutions, Wiley publication.
    11. Jean-Charles, Rochet (2007), Why Are there So Many Banking Crises ?, Princeton University Press.
    12. Lovett William A. ,(2009), Banking and Financial Institutions Law in a Nutshell, West Publishing Co.
    13. Mwenda, Kenneth Kaoma. (2006), Legal Aspects of Financial Services Regulation and The Concept of a Unified Regulator, World Bank Publications.
    14. Wernz, Johannes (2020), Bank Management and Control, Springer Publication.
    15. Tarullo, Daniel K. (2008), Banking on Basel : the future of international financial regulation, Peterson Institute for International Economics.
    16. Ross, Cranston (2002), Principles of Banking Law, Oxford University Press.
    17. Wissink, Laura (2021), Effective Legal Protection in Banking Supervision: An Analysis of Legal Protection in Composite Administrative Procedures in the Single Supervisory Mechanism, Europa Law Publishing.

     

    1. B) Articles
    2. Alexander, Kern (2016), “The European central bank and banking supervision: The regulatory limits of the single supervisory mechanism ”, European Company and Financial Law Review, Vol.13, No.3, pp.467-494.
    3. Alford, Duncan E. (2005), “Core principles for effective banking supervision: an enforceable international financial standard”, Boston College International & Comparative Law Review, Vol.28, pp. 237-296.
    4. Caruana, Jaime (2010), “Basel III: Towards a Safer Financial System”, Bankarstvo, Vol.39, No.9-10, pp.98-111.
    5. Eymen, Gursel (2012), “Basel III Criterias”, Journal of Banking and Insurance Research, Vol.1 No.3-4, pp.16-28.
    6. Ganioglu Aytul, (2007), “Prudential Regulation and Supervision of the Banking Sector and Banking Crises”, Journal of Banking and Financial Markets, Vol.1, No.2, pp.11-29.
    7. Khalili Iraqi, Mansour, Hamid Abrishmi, Asadalah Farzin Vash and Farshid Gohari (2019), "Investigation of liquidity risk and financial helplessness in private banks of Iran", Modern Economy and Trade Quarterly, No. 4, pp. 55-79.
    8. Laurens, François (2012), "Basel III and prudent risk management in banking: Continuing the cycle of fixing past crises", Risk Governance and Control: Financial Markets & Institutions, Vol.2 No.3, pp.17-22.
    9. McNamara, Christian M.; Wedow, Michael & Metrick, Andrew (2019), "Basel III B: Basel III Overview" ,The Journal of Financial Crises, Vol. 1 : Iss. 4, pp. 59-69.
    10. Tsai, Sang-Bing (2017), “Performance Measurement of Banking Supervision: From the Perspective of Banking Supervision Law”, Advances in Economics, Business and Management Research (AEBMR), Vol. 26, pp.236-241.

     

    References In Persian:

    1. A) Books
    2. Ardeshir, Ali (2010), Mechanisms for Supervising State-Owned Companies, Tehran: Noavar Publications (In Persian).
    3. Delghandi, Seyed Abolfazl, (2009), Internal Audit of Banks, Tehran, Sima Danesh Publishing (In Persian).
    4. Elsan, Mostafa (2010), Banking Law, First Edition, Tehran: Samat Publishing (In Persian).
    5. Rasekh, Mohammad (2009), Supervision and Balance in the Constitutional Law System, Tehran: Drak Publications (In Persian).

     

    1. B) Articles
    2. Amin Azad, Amir Hossein, (2011), "Banking Regulations Framework", News of Economic, No. 132, pp. 150-153 (In Persian).
    3. Arjamand Nejad, Abdul Mahdi (2005), "Basic Principles for Effective Supervision", Ravand Quarterly, No. 45, pp. 85-57 (In Persian).
    4. Arshadhi, Ali (2011), "Evaluation of Achievements and Challenges in Iran's Banking System", News of Economy, No. 133, pp. 95-103 (In Persian).
    5. Asadi Zohreh and others, (2019), "Investigating the effects of liquidity and credit risk on Iran's banking stability using the Z-score index", Economic Policy Quarterly, No. 23, pp. 1-29 (In Persian).
    6. Bahrami, Mahnaz (2002), "The Independence of the Central Bank of the Islamic Republic of Iran", Bank and Economy, No. 30, pp. 27-32 (In Persian).
    7. Bozorgh Asl Mousa (2018), "Investigation of the simultaneous relationship of liquidity and credit risks and their impact on the financial stability of banks; Quantitative regression approach", Investment Knowledge Quarterly, No. 25, pp. 299-316 (In Persian).
    8. Jafari Samimi, Ahmed & Derakhshani, Kaveh (2015), "Central Bank Independence in Iran: Theoretical and Empirical Analysis", Quarterly Journal of Monetary and Banking Research, Year 8, Vol. 24, pp. 167-190 (In Persian).
    9. Kurd, Maryam and others, (2000), "Responsibility of the Central Bank; A Comparative Study of the American and Iranian Legal Systems ", Journal of Public Law Studies, University of Tehran, Vol. 50, No. 2, pp. 463-443. DOI: 10.22059 / jplsq.2018.261121.1777 (In Persian).
    10. Manouchher, Manouchehri (1999), "Calculations and international uniform standards of banks", Bank and Economy, No. 6, pp. 56-60 (In Persian).
    11. Motamedi, Manijeh (2010), "Central Bank and the Requirements of Autonomy, Accountability and Management", News of Economy, No. 127, pp. 105-115 (In Persian).
    12. Seif, Walialeh (2005), "The importance and necessity of applying prudential supervision in the banking system", Accounting Knowledge and Research Quarterly, No. 1, pp. 18-27 (In Persian).
    13. Shahchera, Mahshid & Taheri, Mandana (2019), "The Effect of Liquidity Requirements on Central Bank's Policymaking in Iran's Interbank Market", Journal of Monetary and Banking Research, No. 39, pp. 23-48 (In Persian).