Identifying instability in the banking system using the Markov Switching Model

In the context of defining financial stability and systemic risk, the occurrence of phenomena such as  bank panic and credit crunch can be considered as examples of instability in the banking system. Most studies in this field rely on definite and post-event events, which, along with other factors such as lack of attention to the different structure of banking systems, lack of localization of indicators and over-simplification of patterns used, has led to emerging markets and economies. Developments such as Iran do not report the occurrence of events indicating bank instability, so studies aimed at covering the shortcomings of previous studies and using theMarkov switching model  were designed based on the monetary market pressure index approach for the Iranian banking system.That the findings indicate the existence of a signal Lehigh banking crises forThe voting period of the fourth season is 1979 to the third season of 1980, the period of the first season is 1984 to the fourth season of 1986, the period of the second season is 1991 to the third season of 1996 and the period of the second season is 2011 to the third season of 2015.