The Role of Banking in Financing Economic Enterprises

The financing of economic enterprises plays a vital role in production growth, employment, and economic sustainability. Banks, as financial intermediaries, collect funds from households and allocate them to productive sectors, acting as the core of the financial system. In bank-based economies such as Iran, the banking network covers over ۹۰% of firms’ financial needs. However, challenges such as liquidity mismatches, weak credit assessment systems, concentration of loans in specific sectors, and inefficient supervision have diminished banks’ developmental role. This paper analytically reviews financial intermediation theories and examines the position of banks in enterprise financing, concluding with recommendations to enhance banks’ contribution to production growth and sustainable development.

کلیدواژه ها:

Banks ، Financing ، Economic Enterprises ، Sustainable Development ، Fintech ، Developmental Banking