Imbalance in Banks and its Impact on the Financing of Economic Enterprises

Imbalances in Iran’s banking system—especially in recent years—have become a critical issue in the process of financing economic enterprises. Banking imbalance refers to the disequilibrium between banks’ resources and expenditures, extreme volatility in deposits and customer withdrawals, administratively fixed interest rates, and capital shortages in banks. These factors result in serious constraints on banks’ lending capacity and lead to increased financing costs for businesses. The aim of this article is to analyze the effects of banking imbalances on business financing and to identify effective strategies for addressing these challenges. To achieve this objective, a descriptive-analytical method has been employed. The study examines the current condition of Iran’s banking system and analyzes the impact of these imbalances on the economic performance of enterprises. Moreover, through scenario analysis, the outcomes of each proposed solution for improving the financing situation are assessed. The findings of this research indicate that banking imbalances not only increase the cost of financing but also reduce banks’ lending power, limit enterprises’ access to financial resources, and undermine the country’s economic capacities. In this regard, reforming Article 8 of the Law on Interest-Free Banking, selling off non-productive bank assets, strengthening the capital market, and privatizing quasi-state banks are among the key strategies that could reduce banking imbalances, improve banks' liquidity, and facilitate the financing process for businesses.