Budget and Finance Strategic Research

Budget and Finance Strategic Research

Evaluating the impact of bank entrepreneurship on the inflation rate

Document Type : Original Article

Authors
1 Department of Resistance Economics, Management and Strategic Planning, Imam Hossein (AS) University, Tehran, Iran
2 Assistant Professor, Department of Economics, Faculty of Resistance Economics, Imam Hossein (AS) University, Tehran, Iran.
3 Researcher, Economics Department, Faculty of Resistance Economics, Imam Hossein (AS) University, Tehran, Iran.
Abstract
In recent years, the expansion of entrepreneurship activities by banks has become one of the major challenges of the Iranian banking system. This study was conducted with the aim of examining the impact of entrepreneurship by banks on the inflation rate in the country. The main research question is whether and how do non-financial activities of banks affect the increase in the general level of prices? The present study is of an applied type and was conducted with a quantitative method and used panel data. The statistical population of the study included private banks active in the field of entrepreneurship, and four banks, Mellat, Saman, Pasargad, and Parsian, were purposefully selected as samples. The required data were collected from official sources such as the Central Bank and analyzed using EViews software. The findings show that entrepreneurship by banks has a positive and significant effect on the inflation rate; Thus, the entry of banks into unproductive investments has increased liquidity, reduced the allocation of resources to productive activities, and ultimately intensified inflationary pressures. Accordingly, it is suggested that inflation growth be prevented by amending banking laws, restricting banks' non-financial activities, and strengthening liquidity management tools.
Keywords

Volume 7, Issue 1 - Serial Number 25
Spring 2026
Spring 2026
Pages 45-62

  • Receive Date 09 June 2025
  • Revise Date 11 October 2025
  • Accept Date 10 June 2026