Analysis of Challenges and Strategies to Develop More Effective Early Warning System of Bank Bankruptcy

Document Type : Research Article

Authors

1 Department of Management & Economic, Rasht Branch, Islamic Azad University, Rasht, Iran

2 International Center for Development, Education, and Entrepreneurship, Amsterdam, Netherland

3 Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran

Abstract

Banks play an important role in the country's macroeconomics, they have a special importance in the economic pillars of the country, instability in macroeconomic policies, both in the supervision sector and in the real and financial sectors, makes banks as the last buffer against these shocks. Therefore, it is necessary to have an efficient warning system by benefiting from special economic forecasting tools in order to prevent their bankruptcy; This research tries to analyze the challenges and strategies of more effective development of the rapid warning system of banks' bankruptcy so that it can identify the existing obstacles and adopt appropriate approaches. The current research follows the post-positivist paradigm and in terms of its purpose, it is applied research, the results of which have been analyzed based on grounded theory. In the category of Early Warning System (EWS) development for bankruptcy, 11 main criteria and their various considerations were extracted; 10 key challenges and current problems and limitations were introduced and about 80 approaches and strategies were introduced for these 10 challenges, finally 13 main approaches were proposed to make the development of the banking bankruptcy warning system more effective.

Keywords

Main Subjects

References

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Environmental Energy and Economic Research
Volume 8, Issue 1
February 2024
Pages 1-22

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