THE EFFECT OF GOOD GOVERNANCE ON THE REFORMATION OF IRAN’S BANKING SYSTEM

Abstract

The extent to which a country stays bound to the principles of good governance can be evaluated and identified through the use of various scales and indices. Setting the ground for the people’s active participation in the determination of their own destiny, the existence of the conditions that corroborate the parity and freedom in (win-win) selection right, the existence of the grounds that increase the active participation in the achievement of the real common national panorama and create and develop the belief in and adherence to the common national values and strengthening and encouraging the space enhancing the active participation in the decision-making processes are amongst the properties and indices of governance; in this line, the creation of information transparency and production, analysis and offering of correct, precise and up-to-date information and free access to the information, as well, seem to be amongst the necessary cases. Parallel to the adherence to and enforcement of these principles by the government of each country, it is necessary for the formations in the economy domain to make efforts in line with supporting the private sector and its development in the country and take the required measures for the promotion and institutionalization of the competitiveness in the country’s economy as one pillar of good governance; in this regard, cases like the enhancement of the private sector’s competencies in the country, promotion and institutionalization of efficiency and effectiveness in all the economic and industrial programs, contribution to the enhancement of empowerment, professional knowledge and skill of the private sector, assisting the increase in the managerial capabilities, support of the high-quality goods and services’ offering, planning and taking measures for advancing technology and technical abilities of the private sector and increasing the optimality of the private sector in the society can be pointed out. The present study has been conducted with the objective of being practical in a descriptive manner. It is descriptive in that it deals with the status quo of the banking system based on the indicators of good governance.