Purpose: In this context, the current research has sought to identify the state of application and training of fair valuation accounting in banks with a qualitative approach. In this perspective, the impact of fair value accounting on the efficiency of banks is useful in making policy decisions in order to maintain the stability of the financial system through healthy banks.
Method: Using a systematic review approach, the researcher analyzed the results and findings of previous researchers and identified the effective factors. 39 articles were selected from reliable databases.
Findings: The identified categories are: the main criteria are flexibility, supervision, rules and regulations, organizational conditions, knowledge and training, government factors, needs assessment, economic growth, and performance transparency; Therefore, by combining these 9 criteria, all of which have certain sources and repetitions, it is possible to identify these conditions, therefore, to study how to implement fair value accounting methods on the efficiency of banks in different stages of the business cycle or economic conditions for policymakers to understand the health of banks as well as stability.
Conclusion: The financial system is essential. If fair value accounting practices improve banks' efficiency relative to historical cost principles, the additional improvement created by using unrealized gains can be used to generate higher returns on banks' credit portfolios. Credit growth depends on the capital level of each bank.