Providing a model for measuring the readiness of Iranian private banks to internationalize

Subject Areas : Financial Markets and Institutions

Ali Ketabchi ¹ , MirFeiz Fallah Shams ^{2 *} , Seyed Kazem Chavoshi ³

1 - Department of International Financial Management, SR.C., Islamic Azad University, Tehran, Iran.
2 - Department of Finance, CT.C., Islamic Azad University, Tehran, Iran.
3 - Department of Bank and Insurance Management, Faculty of Management, Kharazmi University, Tehran, Iran.

Received: 2024-08-21 Accepted : 2024-12-18 Published : 2025-06-23

Keywords: Iranian Private Banks, Internationalization of Banks, Financial Globalization.,

Abstract :

Purpose: This study aims to assess the readiness of Iranian private banks for international market entry by proposing a conceptual model to identify criteria for evaluation and benchmarking in the context of internationalization. Given the existing challenges such as economic sanctions and weak regulatory frameworks, the findings offer practical insights for economists, policymakers, and financial institutions.

Research Methodology: An initial model for evaluating internationalization readiness was designed and formulated. The findings of a systematic literature review were presented in the form of in-depth, semi-structured interviews with banking experts and senior executives. The interview data were analyzed using the Grounded Theory approach based on Charmaz (2006).

Findings: The developed model for assessing the internationalization readiness of Iranian private banks consists of two main categories, eight subcategories, and 18 dimensions. A detailed examination of four systematic subcategories (economic capability, institutional capacity, environmental sensitivity, and credit conditions) and four non-systematic subcategories (competitive position, financial status, managerial status, and risk position), as well as their interrelationships, can assist banks in formulating optimal internationalization strategies.

Originality / Value: This research introduces an indigenous model for measuring the readiness of Iranian private banks to enter international markets, addressing both systematic and non-systematic risk dimensions simultaneously. The study is exploratory in nature, justified by the novelty of the topic and the lack of prior empirical research in the Iranian context, thereby necessitating an exploratory research design.

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