Modern Studies in Management and Organization

Modern Studies in Management and Organization

The Role of Crisis Management in Preventing Bank Bankruptcies in Afghanistan

Document Type : Original Article | English

Author
MSc. Student, Department of Management, Zah.C., Islamic Azad University, Zahedan, Iran.
10.22034/jmsmo.2026.602710.1070
Abstract
Objective: This study aims to explain the role of crisis management in preventing bank bankruptcies in Afghanistan. Economic instability and multiple financial crises in the country have exposed banks to serious systemic risks, making the identification of preventive mechanisms essential.
Methodology: This research is applied in terms of purpose and descriptive-survey in nature and method. The statistical population included 650 managers and experts in the Afghan banking sector, from which 245 individuals were selected through simple random sampling using the Morgan table. The data collection instrument was a researcher-made questionnaire with a five-point Likert scale. Its content validity was confirmed by supervisors and advisors, and its reliability was calculated using Cronbach's alpha (crisis management: 0.841; bankruptcy: 0.911). Data analysis was performed using descriptive and inferential statistics (Kolmogorov-Smirnov test and linear regression) in SPSS software.
Findings: The results indicated that crisis management and its components—transparent communication (β = 0.399), prioritization of actions (β = 0.496), early problem identification (β = 0.270), and willingness to seek more support (β = 1.129)—have a significant effect on preventing bank bankruptcies in Afghanistan (p < 0.05). The coefficient of determination of the main model was calculated at 0.461.
Conclusion: Effective crisis management, particularly through strengthening transparent communication and willingness to seek more support, can serve as a preventive mechanism in reducing the probability of bank bankruptcies in Afghanistan. These findings emphasize the necessity of developing an indigenous framework for banking crisis management under unstable economic conditions.
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Articles in Press, Accepted Manuscript
Available Online from 15 September 2026

  • Receive Date 13 August 2026
  • Revise Date 03 September 2026
  • Accept Date 15 September 2026
  • Publish Date 15 September 2026