The Relationship between Competition in the Banking Industry and Types of Banking Risks: Evidence from Banks Accepted in the Tehran Stock Exchange

Document Type : Original Article

Authors

1 Assistant prof., Iran Banking Institute central bank of Iran, Tehran, Iran.

2 sbu

3 Faculty Member, Iran Banking Institute

4 M.A IN BANKING

Abstract
Competition is one of the issues that economists always refer to as a solution for economic growth and optimal use of economic resources. Increasing competition and efficiency in the banking market can increase the quality and variety of banking services as well as reduce transaction costs. This is an important reason for the need to measure banking risks by considering the competition between them. In this study, for banks listed on the stock exchange, the relationship between banking competition and various types of important banking risks has been investigated. The risks in question are default risk, assets, market, capital and liquidity, which are measured as a dependent variable of their relationship with the competition index (Herfindal). The results show that banking competition has a negative and significant relationship with asset risk and a positive and significant

Keywords