Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 12 46 2025 09 01 Liquidity risk and credit risk on the stability of public and private banks: considering government debt, inflation rate, and interest rate 13 30 24126 10.22034/ijfma.2025.68798.1891 EN Mansoureh Gholamreza Graduated with a PhD in Financial Engineering, Tehran Branch, Science and Research Branch, Islamic Azad University, Tehran, Iran Fraydoon Rahnamay Roodposhti Professor of Accounting and Finance Department, Science and Research Unit, Islamic Azad University, Tehran, Iran Mirfeiz Fallah Shams Associate Prof., Department of Financial Management, Faculty of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran Journal Article 2022 07 31 Financial stability in the banking system is one of the main features of successful world economies. Financial institutions, especially the banking system, play an irreplaceable and central role in the economic system; From the point of view that their performance, on the one hand, can provide the grounds for economic growth and development, and on the other hand, the conditions of disorder and collapse of an economic system. In this regard, the purpose of this research is to consider the effect of Liquidity risk and credit risk on the stability of public and private banks by assuming government debt, inflation rate, and interest rate. The final sample of the research was taken as a census equal to the accepted banks in the Tehran Stock Exchange from the years 2008 to 2019. The research hypotheses were investigated using two-stage least squares and ordinary least squares regression tests. The results of research hypotheses showed that there is an inverse and significant relationship between liquidity risk and the index of financial health and stability of banks. There is an inverse and significant relationship between credit risk and the index of financial health and stability of banks. Credit risk, government debt, inflation rate, and interest rate have a positive and significant effect on banks' liquidity risk http://www.ijfma.ir/article_24126_3704d4263d1f0a0b2bca7bf7b4d64a58.pdf