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Today, productivity for all developing and developed countries is a national priority and it is gradually appearing as a managerial strategy in our country. Economic growth and improving the standard of living could be possible only by using effective management of scarce resources to obtain the maximum value added. Economics is the knowledge of scarce resources, and management is the knowledge of decision making for utilizing these resources. Scarce resource creates value added in an organization. Hence the management of these resources is of prime importance. In this paper, after explaining the concepts of productivity and the consumer - based marketing, we describe conceptual models of ranking banks customer, customer pyramid model and modified model of Boston Consulting Group for Customer (BCGC) productivity. We then propose a framework to rank bank customers by using MADM Models to offer better services.

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This paper analyzes some determinant Factors of inflationary finance. Transitory Government expenditure is considered as one of these factors. Vegh (1989) and Click (1998) show that (i) If the collection cost of taxes is an increasing function of tax revenue, inflation tax will be an increasing function of the Government expenditure. (ii) There is a positive relationship between seigniorage and the standard error of transitory Government expenditure and a negative relationship with credit worthiness of the country. Economic investigations describe an inverse relationship between the Central Bank independence and seigniorage. Another factor that affects the inflationary finance is the monetary settings of an economy. The existence of positive equivalence between monetary policy standard and inflationary finance and convex relationship between seigniorage and monetary settings for countries with complex financial systems, are the results of these studies. In addition to economic components of inflationary finance, political factors may be influential. The implications of some empirical works imply that the more is the instability of political systems, the more would be the reliance on seigniorage

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According to economic theories, the firms' growth and development would result from higher output using a fixed amount of input, or fixed output resulting from lower levels of inputs which are examples of efficiencies and productivities. This paper, after a brief review of the basics of theoretical foundations of measuring efficiency and defining and analyzing the efficiency based on the microeconomic concept of production, attempts at measuring efficiency in the banking industry. The scope of this paper consists of the followings: two approaches to production and intermediaries in the definition of banking efficiency, three different levels of decision–making regarding the assumptions used in measuring the efficiency, the mathematical form of the four linear programming models specified for measuring the efficiency of the state-owned banking system in Isfahan province using cross section data of 1382, the identification of the efficient and non-efficient banks, remedies to improve the input and output, and finally suggestions for improving the levels of efficiencies in the banking industry. The results show that in the year 1382, four banks, i.e., Bank Melli, Bank Maskan, Bank Refah and Bank for Export Promotion can be classified as efficient banks whereas five banks, i.e., Bank Saderat, Bank Mellat, Bank Sepah, Bank Tejarat, and Bank Keshavarzi are identified as inefficient. With the assumption of constant return to scale of 0.857 and with the assumption of variable return to scale of 0.979 and input minimization with respect to pure technical or managerial efficiencies of 0.979, and the scale efficiency of 0.867 and using the assumption of maximizing the output, the average efficiency are 0.983 and 0.865, respectively.

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In this paper we intend to rank 5 Iranian commercial banks: Bank Melli Iran, Bank Saderat, Bank Mellat, Bank Sepah and Bank Tejarat, which have 12075 branches across the country with 185 supervisory offices. The number of the supervisory offices among these banks varies from 33 to 42. The Monetary Authorities have shown interests in ranking the banks as well as determining their efficiencies. There are international institutions such as the Bankers, which deal with ranking banks in different countries. We have tried to measure the operational efficiencies of the mentioned five Iranian banks. First we provide a brief history of these banks. Then, three major methods of ranking, i.e., principal components, numerical taxonomy and a combination of these two methods are discussed. On the basis of these analyses, we define 24 different indices for ranking each of these five banks. Input and output variables are then defined using Data Envelop Analysis (D.E.A), for estimation of bank efficiencies. Finally with the use of the statistical inference it is shown that three out of these five banks are equally efficient with no major differences.

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All economic firms are exposed to risks. There are a wide variety of risks in financial institutions. Identification, measurement and management of these risks are one of the main responsibilities of senior management in these institutions. Credit risk, market risk and operational risk are among the most important risks in financial institutions such as banks. This paper attempts to explore the operational risk. The contribution of this work is to underline the significance of operational risks, their identification and explaining the different methods for their measurement in financial institutions especially in the banking system.

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Performance evaluation and ranking domestic commercial banks are currently carried out using the volume of banks transactions and activities as well as the absorbed resources. However, inputs such as the space, facilities, human force and the environment are not taken into account. This is a shortcoming of the method currently in use. In this paper and in order to have a more realistic approach, the method of DEA is used within the framework and implementation of a software system to derive the efficiency of bank branches, which constitute a criterion based on input-output of branches. In addition, the method which is currently used for ranking the bank branches is the taxonomy or simple weighing which is imprecise and based upon personal value judgments. This paper presents a method by using the DEA technique which does not suffer from the shortcomings and problems of the common methods in ranking bank branches, hence the results are closer to the reality. This paper attempts to introduce a new and appropriate method for measuring the two different concepts of “ranking” and “ordering”, which is currently used synonymously in Iranian banking network.

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Ali Haghighat, M.A. Economics, and Member of the Organization for Economic Affairs and Finance, Qazvin Province, Economic Development in any country would be impossible without a developed financial system. The proper role of banking system in providing financial facilities may overcome financial problems in productive sectors in the Province. An examination of the banking performance during the period of 1376 to 1384 shows that the growth in production has not been in line with the increased banking facilities, and the banking system is more inclined to award loans based on Islamic contracts with fixed payments. The effect of facilities provided by banking system in Qazvin Province on economic growth in main sectors are carried out based on the Chicago School and is tested using the Panel Data model. The results show that the relationship between production and banking facilities is significant while being very weak and negative. The policy recommendation derived from this research is that the level of per capita banking facilities to productive sectors should be increased in order to enhance the possibility of control, supervision and the effectiveness. Moreover, in order to support productive sectors financially, the banking system can play a significant role in sectoral economic development by giving more emphasis on Islamic Participative Contracts.

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Privatization is one of the important Enterprises in Islamic Republic of Iran in Rrecent years that are a Significant Factor to reach a free competition market and this aim required to observe some legal Regulation and Organization. Otherwise Monopolization and Trusts Lead to Distortion in Competition and lessen consumer welfare in society. In this paper first we define Economic Market and Antitrust Market then we Express Market Power and its indices, Regulation and its instruments and antiTrust law, finally we apply these concepts to banking industry then propose some guidelines for Islamic Republic of Iran's banking industry.

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One of the main challenges in Iran banking system is low level efficiency in various activities and services. The banking system should increase competitiveness in national hemisphere and enhance efficiencies via using inputs and recourses in an optimal manner. The aim of this paper is to measure the technical efficiencies in Mellat banks system to understand how the banking systems use of current resources. To getting this, we selected a random sample in various region, 120 branch in Tehran city to introduce efficient branch and typical as referred branch. Based on Data Envelopment Analysis (DPA) method, we found aggregate technical efficiency about, 0/68 and 0/78 in 2006 and 2007, respectively. These computations show that during the study period technical efficiencies has increased in selected Melat branch .Other findings show that there are a negative correlation coefficient between size of selected branch and efficiency in the period of study (-0/33) and emphasis on weak relation.In addition, the larger Banks branch in terms of financial activities has positive effect on absorption in reserves but has not effective role on enhancing efficiency.

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Regarding the nature of its activities, accompany with higher profitability, banks encounter large amount of risk. Among the variety of risk, credit risk is very important so it is inevitable that bank activities will accompany with risks. As an enterprise, having accurate information about ability of borrowers in paying back of their loans is the most important function and vital task in a bank. In this regard this research calculates the efficiency of 75 companies which have borrowed from BANK- E- Keshavarzi in 1380 by using Data Envelopment Analysis and it ranks them based on this procedure. It concludes, 15 companies stand on the border of efficiency. Being average technical efficiency about 78%, it shows that the mentioned companies have used the inputs of production about 22% beyond their needs, so their activities have low profitability. According to this result, BANK- E- Keshavarzi could rank his companies in regard to different levels of risk.

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The ranking of homo economic units is one of the most important issues for decision making and work improvement in these units. A subsector of these economic units in each country is bank industrial. In some countries like Iran, albeit doing grading for bank branches, ranking of these sections is done through traditional methods (e.g just branch sources) or full mathematical data envelopment analysis model. In this paper, in addition of introducing applicable and advanced Analytic Network Process model, we rank the chosen one, two and three grade branches of Saderat Bank of Iran in Tehran city. The achieved results are shown the efficiency and precision of this method.

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This paper studies the technical efficiency of branches of Refah Bank in Tehran Province in 1387 based on Stochastic Frontier Analysis (SFA) and Translog production function. The findings show that the branches of Milad and Social Securities have enjoyed the highest technical efficiency, getting to about 96 percent, standing as the reference set. The branch of Shush Square suffers from minimum technical efficiency, estimated about 29 percent. Moreover the average efficiency of north branches of Tehran is estimated 87 percent and the south ones 79 percent. Overall, the average level of technical efficiency of all branches is found to be 81 percent. So that Refah Bank branches could have produced 19 percent more output using the same level of the inputs just by improving the combination of inputs without any increasing needed. The elasticity of output with respect to labor with higher education is 0.39 having contributed to output much more than other inputs.

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This paper investigates the long run relationship between financial development and economic growth since 1340 to 1385. Firstly, we study diverse instruments of Iranian financial system. Then, we define 8 indices extracted from banking system to represent indicator of financial development. Furthermore, we transform the indexes of financial development into a unique and comprehensive index by using factor analysis method. We estimate relationship between these variables an assess causality relationship by means of Granger Causality Test. Our findings show: (a) there is a direct relationship between financial development and economic growth in Iran and (b) the direction of causality is from economic growth to financial development.

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Regarding to agricultural sector importance and many managers efforts in order to mechanization and increasing of efficiency and productivity this sector in Iran, lead to necessity of banking credits allocation in order to protection of its producers. This study intends to assist economic managers by a Multiple Attribute Mathematical Programming model that is based on Fuzzy Logic for optimum allocation of banking credits to borrowers in agricultural different sections, as constraints of bank insert in decision making model and bank management gain most desirability. Present study done for agricultural bank of Iran. The results of study indicated that optimum model in allocation of banking credits should change and consist of 13.24% tillage, 5.01% husbandry, 11.62% animal husbandry, 5.01% birds, 6.62% fishery, 5.01% natural resources, 5.01% agricultural machines, 18.24% agricultural services, 23.25% agricultural industries and 7.01% Non agriculture sectors. Consequently, current allocation of credits is not optimum in bank agricultural of Iran and this bank need to reform and adjustment in percents and credits quantity.

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The main purpose of this study is to investigate the relationship between financial development and economic growth, by using new variables such as domestic credit provided by banking sector, domestic credit to the private sector, broadest definition of money, gross domestic saving and also government expenditure and trade. The 2 latest variables represent real sector of economy, and inflation, during 1967-2007. The estimate of long run relationships between variables shows negative relationship between growth and financial development. However, short run relationship between growth and financial development have been done by Granger causality block erogeneity test that findings show domestic credit provided by banking sector doesn’t entails causality Granger of growth. Finally, the relationship between growth and domestic credit to the private sector is the two way causality.

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This research aims to estimate technical efficiency of agriculture bank and to identify the main determinants of efficiency at this bank. For this purpose, Stochastic Frontier Production Function was used. In this study, both Error Component model of 1992 and technical efficiency effect model (1995) were used. To estimate the models, we used variables such as granted loans and credits, cheap and expensive deposits, labor (number of employees), fixed assets (ac a proxy for capital), and the time to show the technological changes at the level of 36 decision making units (DMU). The results indicate that Technical Efficiency of agriculture Bank (the units) corresponding to Model I and II are 79.57% and 74.97% respectively. In Addition, the results show the existence of positive correlation between the efficiency of DMU and the size of the ir branch network, the share of deposit out of total deposits of the provincial state banks, the granted loans to Agriculture Sector. Finally, a negative relationship has been also witnessed with instability in management, higher share of deposit in total, bad debts and the time.

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The imaginable essences around the world are either objective or subjective that rely on original objective concepts. In this regard some phenomena neither exist in objective world nor in subjective concepts, and only a falsified fact is what exists. Money –as a human’s innovation- could be an objective essence in commodity or a subjective concept (fiat money). Furthermore money could be forged from ex nihilo money creation. This paper compares western and Islamic economists’ viewpoints about subjective essence of money and credit. The western approach emphasizes on function of money while Islamic attitude mainly based on identity of money. So the difference between their attitudes towards money essence and function, leads to different entrance into the money concept.

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The role of financial intermediaries in the monetary transmission mechanism has been largely neglected in the study of macroeconomic fluctuations. Until recently, most dynamic stochastic general equilibrium models (DSGE) that were used to conduct monetary policy analyses incorporated a frictionless financial sector. In this study, we investigated that how banks will react if monetary shock occurs in the economy. To do so we used DSGE model and Bayesian Estimate. The results show that the monetary shocks Increase demand for loans and reduce the amount of deposits.

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While financial market in Iran’s economy is based on banking system, Money market is very important one in Iran. The financial crises of the past decade, and the IMF’s initiative to build an early warning system against such crises, have stimulated a wave of research into the empirical determinants of banking crises. A common methodological challenge facing empirical research in this area is the identification of crises events. There are two common way to identify banking crisis event method and Money Market Pressure Index .Therefore, the main goal of this paper is to measure Money Market Pressure Index in Iran. After reviewing existing literatures, both from the theoretical and empirical aspects, using monthly data during 1971- 2008 we introduce and measure the banking crisis index for Iran’s economy. The results indicate that the Iranian banking system has experienced crisis frequently, however, due to the state-owned banking system in Iran, those crisis have remained unobserved.

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The objective of this study is to determine the factors affecting loan repayment performance of agriculture bank of Maragheh branch. Knowing these factors would improve performance of claims collection. So, claims classified in four groups of on time, past due, outstanding and suspicious. Required data has been gathered by reviewing files of borrowers of each group and the multi-nominal logit model has been used. The results of LR test and Wald test showed that there is no possible combination of above mentioned groups. Also, Hausman test results indicated that these groups are independent. The results of the multi-nominal logit model estimation suggested that the variables of loan amount, interval of installments, number of installments, kind of guarantee, extended, kind of credit, activities of horticulture, agronomy and services are statistically significant. The results also showed that loan amount and extended have a negative effect on the improvement of claims collection but other variables have a positive effect on it. Finally, the marginal effect and elasticity were calculated separately for every variable in each group.