Quarterly Studies in Banking Management and Islamic Banking

The effect of bank liquidity indicators and the international financial crisis on the performance of selected Iranian banks

Document Type : Original Article

Authors

Nasser Kheyri 1
Abdolrahim Hashemi dizaj 2
Zahra Faturechi 3

1 Master's degree in theoretical economics from Mohaghegh Ardabili University

2 Associate Professor, Faculty of Social Sciences, Mohaghegh Ardabili University

3 Professor of Social Sciences Faculty of Mohaghegh Ardabili University

https://doi.org/10.22034/jifb.2024.463584.1572
Abstract
The evaluation of the performance of banks cannot be ignored due to the various and varied effects of these institutions on the economic growth and development of countries, and they play a decisive and evident role in the life of a country, including countries that have bank-oriented financial markets. So that it can be considered as the driving force,accelerator and balancer of the economic sector and the development of countries. In this research, return on deposits and return on assets have been selected as variables for measuring banks' performance. In the form of a regression model and using panel data, the effects of banks' liquidity indicators (the ratio of bank cash to total bank assets, the ratio of bank cash to total bank deposits, the ratio of facilities to total bank assets, the ratio of facilities to total bank deposits) and the financial crisis of 2007-2009. This research was carried out using combined annual data of 10 banks and during a period of 18 years . The results of model estimation using the generalized least squares method show that, , the ratio of cash to total assets and the ratio of facilities to total assets have a negative and significant effect on the return on deposits, and the ratio of facilities to deposits has a positive and significant effect on the return on deposits. Also, the ratio of cash to total assets and the ratio of facilities to total assets have negative and significant effect on the return on assets.

Keywords

Liquidity of banks
The performance of banks
financial crisis
Panel data

Home

Guide for Authors

Submit Manuscript

Reviewers

Contact Us