مهدی نجاتی

Granular residual is created in the banking network when there are a few large banks with many small banks. In this case, the effect of the shocks on each bank not lost in total that can lead to macro-economic consequences. The transmission of monetary policy through change in bank facilities is one of the key mechanisms affecting monetary policies. The power of transmission of monetary policy mechanism is highly dependent on the specific characteristics of the banking network. Thus, the importance of granular residual and considering it on transmission of monetary policy in the banking network is important. The purpose of the present study is the effect of granular residual in Iran's banking network on the transmission of monetary policy through lending channel. Indeed, the granular residual was imported in this study as a independent variable that can effect on bank facilities and lending channel. Therefore, in the present study, the balance sheet data of 32 banks from the banking network for the period 2001-2014 were used.Themodel used in this study was estimated through the Generalized Method of Moments (GMM). The results showed that in the first, according to available theories in relation to the granular residual and conducting relevant empirical analyses, the presence of granular residual in Iran's banking network is confirmed. Also as expected, granular residual has a positive and significant effect on Iran's banking network facilities and the transmission of monetary policy through lending channel is weakened by increasing the granular impacts.

This article investigates the financial convergence between Iran, OPEC & the Shanghai Organization trade groups, of which Iran is a member.  The analysis covers the period of 2005 to 2017.In order to examine the convergence dynamics of these financial markets; we have employed the Philips and Sul (2007) methodology, which uses a nonlinear time-varying factor model. This paper provides a comprehensive picture of the financial systems within Iran and its convergence clubs by testing the convergence of their money market with domestic credit to private sector by banks (% of GDP), deposit and lending interest rate, real interest rate, and capital market with Stocks traded, total value (% of GDP). The empirical findings show that money and stock markets of OPEC and the Shanghai group do not form a homogenous convergence club. Results show that Iran has convergence with some countries in OPEC and the Shanghai group in money and stock markets, which can be explained by their similar economic indicators in both markets. Furthermore, the convergence speed between Iran and the Shanghai countries is higher than that of Iran and OPEC countries, which proves that joint trade agreements are stronger reasons for convergence than the oil factor. Iran should implement further structural reforms in order to achieve greater financial convergence with its joined groups.