“A study on the effects of governmental interferences in iranian banking sector”

This paper addresses the banking crisis potential in Iran for next few years from now. In the view of the fact, banks like other institutions are also looking for augmenting their profits and increasing their strength by expansion. This survey shows that after interference from Iranian government in the working of banks, the going concern of Iranian banks is in stake. The research surveys the Iranian bank positions with two perspectives. First we analyzed financial position of Iranian banks with application of comparing the Average Interest Rates (AIR) with Average Deposit Rates (ADR) during the year 2000 to the year 2007. And second with the comparison between Inflation Rate (IR) and loan AIR during the year 2000 to the year 2007. Our study is exhaustive covering all Iranian banks. There are eleven governmental banks and six private banks in Iran. In this paper the authors comes to conclusion on the basis study, It is better that Iranian government rather encourages banking sectors to enlarge their services otherwise the Iranian banks will be heading towards big trouble. In this economical condition we are very far from our economical utopia. For covering this gap the government should take professional actions for reducing this economical gap and give a helping hand to the crisis ridden banking sector.