Iranian banks' profitability linked to capital ratio and asset strength, inflation hinders.
The financial performance of Iranian banks from 2013 to 2019 was studied. The researchers looked at 18 banks listed on the Tehran Stock Exchange during this period. They found that a higher capital ratio is linked to better financial performance in banks. On the other hand, a higher inflation rate is associated with lower financial performance. Additionally, banks with stronger assets tend to be more profitable. It is important for regulators to ensure that banks maintain high levels of capital for a healthy banking sector in Iran.