Samad Aziznezhad - Faculty of Majllis Research Center (IR.IRAN)
Fathollah Tari - Associate Professor of Allameh Tabatabaie University,

Banking system is an important pillar for economy in any country. Its efficiency and deficiency can affect economic performance. In this frame bank’s resource is themain variable that helps it to achieve aims, in comparison with other variables. The volume of resources makes it possible for banks to offer good financing and improvetheir effectiveness during financing operations. Unfortunately, the present condition of bank resources shows that dominant part of these resources has been constrained by small and great debtors. Because of this problem banking system cannot shelter and aid financing firms in suitable manner. Non-Performing Loans (NPLS) have different causes. Varied and anomalous laws and regulations is the basic cause that affects bank resources from two aspects: first, tasks imposed by lawmaker and second, inconsistency and continuous variation in regulations. As suitable and adaptable laws and regulations can reduce volume of NPLS, the varied and anomalous types can increase the volume. This paper discusses some principal reasons for NPLS, then the role of banks in national production, NPLS situation for world and IRAN and the effects of regulations, as an exogenous factor on NPLS are investigated. Finally, some proposals for reduction NPLS based on experiment of rich countries are offered.

Bank, Non-Performing Loans, Law and Regulation and National Production