An Inquiry into the Convergence of Provincial Banking Performance: A Nahar and Inder Approach

In this study, in order to examine the convergence of the performance of banks in the provinces in the period of 2018-2019, the index of the ratio of facilities to deposits has been used. This ratio shows the level of activity of the banks in the matter of intermediation of funds and expresses the way of management and how to allocate the resources collected from the deposits in the granting of facilities. that the provinces of Tehran, Fars, Gilan, Kerman, West Azarbaijan, Kermanshah, Yazd, Golestan, Hamadan, Markazi, Lorestan, Qazvin, Hormozgan, Bushehr, Qom, Chahar Mahal, Bakhtiari and North Khorasan have an average negative slope; But among these provinces, the t statistic is significant for Golestan and Qom provinces. Also, the average performance of banks in 14 provinces diverges over time from the average ratio of facilities to deposits of the provinces, and among these provinces, the t-statistics for the provinces of Khorasan Razavi, Mazandaran, Khuzestan, East Azerbaijan, Ardabil, Sistan and Baluchistan, Ilam and South Khorasan is significant.Also, in 23 provinces, the ratio of facilities to deposits is more than 0.85 (based on international and domestic criteria and standards), hence we are witnessing monetary indiscipline, which shows the weakness of the financial system and the dominance of the government's financial policy