Analysis of Factors Affecting Non-Performing Loans with a Focus on the Role of Integrated Electronic Services in the Iranian Banking System (Case Study: Sepah Bank, Fars Province)

Articles in Press

Document Type : Original Article

Authors

Abolghasem Bagheri ¹

Mozhgan Moallemi ²

Mohsen Rahmanian Kooshkaki ²

¹ Department of Agriculture(Agricultural Economics), Payame-Noor University, Tehran, Iran.

² Department of Economics, Faculty of Management, Economics and Accounting, Payame-Noor University, Tehran, Iran

https://doi.org/10.22067/erd.2026.97404.1346

Abstract

Optimizing the relationship between resources and expenditures in banking is essential for financial stability and economic growth; however, the increase in non-performing loans (NPLs) resulting from economic fluctuations threatens this stability, making the identification of mitigating factors a critical issue. Based on this, the present study was designed to investigate the impact of integrated electronic services and other macroeconomic factors on the amount of NPLs in branches of Sepah Bank in Fars Province. This research is applied in terms of purpose and descriptive-correlational in terms of method. Panel data from selected branches during the period 2015-2024 were collected and analyzed using Eviews-10 software and the Generalized Least Squares (GLS) method. Due to the existence of high multicollinearity among the variables, two separate models were estimated. The findings of the first model showed that integrated electronic services have a negative and significant impact (coefficient: -12061.09, p=0.000) and the growth of facilities has a positive and significant impact (coefficient: 12.68, p=0.005) on NPLs. The findings of the second model indicated a negative and significant relationship between inflation (coefficient: -352.2, p=0.000) and GDP growth (coefficient: -367.6, p=0.001) with NPLs. The innovation of this research lies in its focus on the role of integrated electronic services as an institutional and technological factor in credit risk management, as well as its investigation within the context of a bank merger event (the merger of Mehr Eghtesad Bank into Sepah Bank). By integrating and extending the existing literature, this study emphasizes the necessity of a combined strategy including macroeconomic stabilization and accelerating digital transformation for effective financial stability management and the reduction of non-performing loans.

Keywords

Integrated Electronic Services

Economic Growth

Sepah Bank

Non-Performing Loans

Inflation

Subjects

• Monetary Economics-Financial Economics-

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