Banks' characteristics, state ownership and vulnerability to sanctions: Evidences from Iran

What kind of banks are less vulnerable to financial and economic sanctions? Answering this question can provide very important guidelines for many developing markets which are vulnerable to risk of sanction. This study investigates the effect of banks' characteristics as well as state ownership on the banks' vulnerability to financial sanctions. The paper provides results which indicate banks with higher capital and also higher state ownership tend to be more vulnerable to economic and financial sanctions. We also found that there is a negative relationship between banks' liquidity ratio and their vulnerability to financial sanctions.