Iranian Journal of Accounting, Auditing and Finance

Iranian Journal of Accounting, Auditing and Finance

Identifying the drivers of asset quality review in Iranian banks

Document Type : Original Article

Authors
Mohammadreza Mehrabanpour 1
Mohammad Mehdi Dana 2
Dohammad Hashem Botshekan 3
1 Department of Accounting and Finance, Faculty of management and accounting, University of Tehran, Farabi Campus, Qom, Iran
2 Department of Accounting, Faculty of Business and Economics, Persian Gulf University, Bushehr, Iran.
3 Department of Finance and Banking, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran.
10.22067/ijaaf.2026.47478.1589
Abstract
The purpose of this study was to examine a crucial issue in the Iranian banking industry: the assessment of asset quality. Previous studies have shown that a comprehensive model of asset quality review is still lacking. Only a few papers have systematically examined the factors affecting banks’ asset quality. In addition, the key strategic drivers of Asset Quality Review (AQR) in Iranian banks were identify. A theoretical literature review, interviews with banking experts, fuzzy Delphi screening with 37 experts, and MICMAC software analysis of variable interrelationships were used. Findings revealed that the determinants of AQR fall into five categories: financial, credit, supervisory, macroeconomic, and institutional. In total, 53 sub-indicators were validated. Results showed that capital adequacy ratio, cost-to-income ratio, loan growth, non-performing loans, Collateral Valuation (CV), compliance, inflation and interest rates, as well as legal requirements and auditing, are the most significant strategic drivers in this domain.
Keywords
Identification of drivers
Asset quality review in banks
Fuzzy Delphi approach
Futures studies
Subjects
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