Explanation and Assessment of the Effectiveness of Banking Policymaking on Iran’s Economic Development from an Institutional Perspective

Alireza  Daneshmandeslami; Mohammad Ziaaddini; Hamid  Taboli; Seyed Mohammad Reza  Hosseinipour

Authors

Alireza Daneshmandeslami Phd student, Department of Public Administration, Raf.C., Islamic Azad University, Rafsanjan, Iran Author https://orcid.org/0009-0006-6480-2493
Mohammad Ziaaddini Department of Public Administration, Raf.C., Islamic Azad University, Rafsanjan, Iran Author https://orcid.org/0000-0001-7764-3387
Hamid Taboli Associate Professor, Department of Public Administration, Payame Noor University, Tehran, Iran Author https://orcid.org/0000-0003-1937-9965
Seyed Mohammad Reza Hosseinipour Assistant Professor, Department of Public Administration, Raf.C., Islamic Azad University, Rafsanjan, Iran Author https://orcid.org/0000-0002-0518-8861

Keywords:

Banking Policymaking, Economic Development, Institutionalism, Credit Allocation, Monetary Policy, Banking Governance, Iran

Abstract

This study aimed to explain and assess the effectiveness of banking policymaking in Iran’s economic development from an institutionalist perspective by identifying the institutional mechanisms, constraints, and conditions shaping the transmission of banking policies into developmental outcomes. This study employed a qualitative research synthesis and documentary meta-synthesis design based on the seven-stage framework of Sandelowski and Barroso. The documentary population included official monetary and banking laws, development-plan provisions, policy resolutions, research and supervisory reports, and high-ranking Persian scientific publications covering 1983–2023. From an initial pool of 158 documents, 44 sources met the inclusion and quality criteria, including 9 key legislative and policy documents, 18 detailed research and supervisory reports, and 17 scientific articles or theoretical works. Methodological quality was assessed using the 10-item CASP checklist. Data were coded and synthesized through iterative qualitative analysis, and trustworthiness was enhanced through source triangulation, parallel coding by two researchers, Cohen’s kappa (κ = 0.87), and maintenance of an audit trail. The meta-synthesis yielded 48 primary codes, 16 subcategories, and six overarching institutional dimensions. Monetary and fiscal discipline was identified in 93.18% of the final sources, followed by developmental orientation of credit allocation (88.64%), compatibility with the wider political-economic environment (86.36%), institutional coherence of banking governance (84.09%), regulatory quality and supervisory capacity (81.82%), and institutional incentives and rent structures (77.27%). The findings further indicated that fiscal dominance, credit misallocation, regulatory instability, weak supervision, rent-seeking, and insufficient long-term financing were the principal constraints on the developmental effectiveness of banking policy. Banking policymaking in Iran contributes to economic development conditionally rather than automatically; its effectiveness depends on coherent governance, fiscal discipline, productive credit allocation, effective supervision, stable institutional rules, and incentive structures aligned with long-term development objectives.

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Explanation and Assessment of the Effectiveness of Banking Policymaking on Iran’s Economic Development from an Institutional Perspective

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