Assessing the Ethical Banking in Iran: A Case Study of Iran's Banks, Shiraz Branches

Ethical banking is a new type of banking that has recently been noted in conventional banking and is intended to compensate for the latter's shortcomings. In ethical banking, moral and social values are also considered alongside economic indicators.
Some economists believe that Islamic banking is a system that provides ethical financial services. The main objective of Islamic banks is to develop financial methods based on Sharia law. With regard to Islam's emphasis on moral values, it can be said that all services offered in Islamic banking must be based on codes of ethics.
In this study, the ethical practice of banking in Iran is examined. We have conducted a field research through questionnaires and SPSS analysis of the data gathered from the staff and customers in Shiraz banks. The results show that banking in Iran has failed to keep up ethical standards such as preventing the formalization of contracts, meeting the essential needs of the poor, and carrying the social and environmental responsibilities.