Banking Service Diversity as a link  between  Regulatory Capital and Bank Value (Case Study of Selected Iranian Banks)

Komijani, Akbar; Sheikhhosseini, Mohammad; Habibi, Reza; Alijani, Mehrzad

doi:10.22034/jifb.2025.496762.1599

Banking Service Diversity as a link between Regulatory Capital and Bank Value (Case Study of Selected Iranian Banks)

Document Type : Original Article

Authors

akbar komijani ¹

mohammad sheikhhosseini ²

Reza Habibi ³

Mehrzad Alijani ⁴

¹ Professor, Faculty of Economics, University of Tehran, Tehran, Iran

² DBM Student of Iran banking Institute

³ Ph.D. in Statistics, Faculty Member, Iran Banking Institute

⁴ Department of Financial Engineering and Financial Management, Faculty of Financial Sciences, Kharazmi University, Tehran, Iran

https://doi.org/10.22034/jifb.2025.496762.1599

Abstract

Banks, as one of the most important institutions of the money and capital market, play a valuable role in economic development. Hence, the key interrelationships and connections between them are important. In this article, the effect of regulatory capital and its relationship with types of banking services and bank value will be explained. In this regard, considering the nature of domestic assets and banks compared to foreign banks at the same time, the effect of investment on types of services for income and assets and from other regulatory investments on bank value in the presence of banking services will be examined. Also, in this article, the explanation presents regulatory capital significantly with diverse services for related income, and with diversity for investment (facilities in Iran and capital assets in foreign banks). Regulatory capital can act as an alternative to diversify to reduce bank default. Introducing the value of a bank, considering the type of economic structure and the nature of the commercial activities of banks, and how to calculate it, will be important and noteworthy points in this article.

Keywords

Capital regulatory

diversified banking services

bank value