The warnings effectiveness of the supervision department of the central bank on Iran's banking network performance

One of the main purpose of  the Central Bank Supervisor is assessing of banking performance and identification of high risk banks, issued a warning, proposes enforcement action to amend banking operations. Since a formal warning may expose a bank to bankruptcy risk, first of all informal notification is sent to the bank at risk.  So The effectiveness of informal warnings on improving performance of banks is important. In this paper, due to the lack of warnings Statistics Monitoring and Due to the Warnings apply theoretical and empirical literature in the field of monitoring, An appropriate measure for this variable design and its effectiveness will be evaluated on the performance of the banking network. First, using the Probit model, we estimate the probability of receiving notice of the supervision and then design a Panel model for monitoring the effectiveness  of the exercise caution on the performance. The results of the model suggest that warning  of supervisor has lag effective in improving the performance of banks.