A study Of the contagion of financial helplessness and credit risk in the country's banking system

Designing and implementing a credit risk measurement model in the country's banking system will play an effective role in increasing the productivity of the country's banks in the optimal allocation of resources. Therefore, credit has an important role in the performance of the country's banking sector. Therefore, based on this argument, the present study designs and explains a model for the contagiousness of companies' financial distress risk and credit risk in the country's banking system. For this purpose, the limit (limit) theory of Akhtar and Dali (2017) research was used to measure the contagiousness model of financial distress risk. The hypotheses were tested using the statistical method of regression analysis with combined data using the information of 23 banks listed on the Tehran Stock Exchange during the years 2014 to 2019. The findings of the first hypothesis of the study indicate that there is a significant relationship between the risk of financial helplessness of banks and the credit risk of the country's banking system. Also, the result of the second hypothesis showed that the risk of financial helplessness of banks is transmitted to the Iranian banking system in the form of credit risk.