Document Type : Original Article

Authors

• Ebrahim Abdipour fard ¹
• Alireza Dabirnia ²
• Sayyed Hadi Arabi ³
• sedigheh gharloghi ⁴

¹ Professor of Private Law Department, ,Faculty of Law,, University of Qom

² Associate Professor, Department of Public Law, Faculty of Law,, University of Qom

³ Associate Professor, Department of Islamic Economics., Faculty of Economic Sciences,, University of Qom

⁴ phd student University of Qom

Abstract

Capital adequacy is a benchmark used to assess a financial institution’s capacity to fulfill its obligations and absorb potential losses. This ratio reflects the degree of stability and financial strength of such institutions, and, in simpler terms, ensures that they possess sufficient resources to meet their liabilities, safeguard depositors’ rights, and foster public confidence.

The present study, employing a descriptive-analytical approach and focusing on the legal and regulatory frameworks, investigates how the requirements related to capital adequacy are articulated within Iran’s legal system and how supervisory bodies implement these provisions. An examination of domestic laws and regulations indicates limited alignment with international standards in defining capital adequacy ratios. The findings of the study suggest that adherence to the requirements set forth by the legislature, along with rigorous and continuous oversight by the Central Bank, can both enhance public trust in the banking system and improve the resilience of banks against economic volatility and financial crises.

Keywords

• Capital Adequacy Ratio, Central Bank Supervision, Depositors'
• Rights, International Standards, Public Trust