The International Sanctions’ Impact on Lending Behaviour of Iranian Banks

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Ekbatani, Sepehr | 2015

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 47360 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Rahmati, Mohammad Hossein; Madanizadeh, Ali
Abstract:
In this study, the impact of imposed financial sanctions on Iranian banks is being estimated using micro-level data. Using a panel regression while controlling on some variables and other shocks, we find a decline in both level and slope of granted loans by sanctioned banks. Moreover, we examine the varying characteristics of banks and how they respond to sanctions. Granted loans by big banks are found to decline drastically
and from the prospective of ownership, private banks are also more vulnerable toward sanctions. At last, we seek for balance sheet channels for sanction transmission, and in almost every case the existence of such channel is supported which means, the impact of sanctions is stronger for banks with less liquid assets or less capital
Keywords:
Banking ; International Sanctions ; Granted Loans ; Panel Regression ; Bank-lending Channel