The Research Department of Economics and Management of Tadbir Nikan Business, Marketing, and Finance Open 3092-6238 In Press 2027 07 01 Presentation of a Financial Model for the Stability of the Country’s Banking System Presentation of a Financial Model for the Stability of the Country’s Banking System 1 14 EN Journal Article 2026 04 13 <p>Banks, as one of the most important financial institutions, play a central role in economic development, optimal resource allocation, and the facilitation of financial transactions. Therefore, the stability of the banking system is regarded as one of the main pillars of macroeconomic sustainability. The aim of the present study was to present a financial model for the stability of the country’s banking system using a qualitative grounded theory research method. For this purpose, semi-structured interviews were conducted with fourteen university professors and senior managers in the banking industry who had more than 15 years of work experience and held a master’s degree or higher. Data analysis led to the extraction of 12 main categories within a paradigmatic model and six conceptual dimensions. “Macroeconomic system stability,” “effective banking policymaking and supervision,” and “cybersecurity” were identified as causal conditions; “international sanctions” as an intervening condition; “accumulation of non-performing loans” and “state-owned banking system” as contextual conditions; “financial transparency,” “risk reduction in the banking system,” and “enhancement of public trust” as the interactional dimension; “banking system stability” as the core phenomenon; and “business financing” and “bank competitiveness” as outcomes. The resulting financial model shows that achieving banking system stability is the result of interaction among macroeconomic stability, intelligent policymaking and supervision, financial transparency, cybersecurity, and risk management. The findings also indicate that intervening and contextual conditions, particularly sanctions and the state-owned structure of banks, play a prominent role in the quality of institutional interactions and the level of public trust. Ultimately, banking system stability, as the core phenomenon, provides the basis for sustainable financing and the enhancement of bank competitiveness.</p> https://bmfopen.com/index.php/bmfopen/article/download/516/424