The Correlation between Financial Health and Business Continuity of Banks with the Mediation of Organizational Resilience

Abstract Introduction: Financial soundness of the bank means the optimal financial and operational status of a bank, which can play a significant role in the continuity of the bank's business, leading to the bank's resilience to crises. This study aimed to determine the correlation between financial health and bank business continuity with the mediating role of organizational resilience. Methods: This research is a descriptive-correlational research. The statistical population consisted of 260 middle and operational managers of Future Bank who were selected 160 using Cochran formula. Data from 160 individuals were collected using three instruments including the “Financial Systems Soundness Indicators”, the “Business Continuity Management Questionnaire” and the “Organizational Resilience Tool”. After translating the questionnaires, the validity of the instruments was confirmed by content and construct validity using confirmatory factor analysis and the reliability of all three was confirmed by Cronbach's alpha coefficient. SPSS software. 22 and SPLS were used for data analysis. Results: Financial health and its components were positively and significantly correlated with organizational resiliency (P <0.01, β = 0.15) as well as with bank business continuity (P <0.01, β = 0.16). Organizational resilience and its components also had a positive and significant correlation with business continuity (P <0.01, β = 0.15). Conclusions: Financial health in the banking industry is positively and significantly correlated with business continuity and mediating organizational resilience. Bank managers are recommended to improve financial health indicators to maintain business continuity and organizational resilience.