Malihe Rostami; Adel Azar; Mahmoud Dehghan Nayeri
Abstract
In recent years, the banking industry has undergone drastic changes. Banks are trying to be more cost-effective and profitable to stay competitive. Achieving profit requires banking services to be produced and provided at a minimum cost, and revenues to be maximized. The purpose of this study ...
Read More
In recent years, the banking industry has undergone drastic changes. Banks are trying to be more cost-effective and profitable to stay competitive. Achieving profit requires banking services to be produced and provided at a minimum cost, and revenues to be maximized. The purpose of this study is to simulate the bank cost model to improve, control, and adjust costs and increase profitability Dynamic simulation of research using Vensim software has been performed in a period of twenty years, from 2011 to 2031 in an Iranian commercial bank. To do that, first, the main indices influencing the cost model based on the real operation were extracted; then the indices were applied to the final research model. The model simulated based on bank performance can be used as a decision tool for bank managers to reduce costs and examine the impact of relevant variables in this area.
Sara naz Moazzez aghziarat; Mohammad Ebrahim Aghababaei
Abstract
Today, one of the major problems of banks is the amount of their non-performing loans. The ratio of non-performing loans is used as a measure of bank health. Therefore, the purpose of this study is to investigate the factors affecting the ratio of non-performing loans. In this regard, the vector Auto ...
Read More
Today, one of the major problems of banks is the amount of their non-performing loans. The ratio of non-performing loans is used as a measure of bank health. Therefore, the purpose of this study is to investigate the factors affecting the ratio of non-performing loans. In this regard, the vector Auto Regressive– vector error correction model has been used to examine the effects of macroeconomic and financial variables such as business cycle, government debt, unemployment rate, foreign direct investment, and domestic credit by the banking sector. To achieve the research goal, quarterly data from 1996 to 2017 were collected from Iranian banks. According to the results of the study, the relationship between business cycle, government debt, and foreign direct investment and the ratio of non-performing loans is negative, while he relationship between domestic credit provided by the banking sector and non-performing loans ratio is positive. Unlike other variables, the unemployment rate variable has a short-term effect on the ratio of non-performing loans. According to the results of analysis of variance of the estimated model in the long run, approximately 48.96% of the changes in the ratio of non-performing loans, through the past values of this variable, 41.42% by the government variable, 4.14% by the banking sector domestic credit variable, 3.12% by the unemployment rate variable. 1.3% is explained by the business cycle variable and 1.6% by the foreign direct investment variable.
HESAN GOLMORADI; Reihaneh Ramezanpour
Abstract
The banking system of any country has a very important role in the economic growth and development of that country. One of the influential elements in the performance of the banking system is the profitability of banks. one of the most important indicators of banks' profitability is the spread or profit ...
Read More
The banking system of any country has a very important role in the economic growth and development of that country. One of the influential elements in the performance of the banking system is the profitability of banks. one of the most important indicators of banks' profitability is the spread or profit margin which is obtained from the difference between the average interest income from the granted facilities and the average interest paid on deposits. Determining the factors affecting profit margins and studying the short-term and long-term relationships among them. can be used for appropriate policy-making in the banking system. In this study, using Autoregressive Distributed Lag (ARDL), the effect of variables such as inflation, the volume of banking deposits and public sector debt to the banking system on Iran's banking profit margin will be determined during 1984-2016. The results of the study show that among macroeconomic factors, the volume of banking deposits has a negative effect. The public sector debt to the banking system has a positive and meaningful effect on the banking margin. Also, the effect of inflation is neutral in the long run.
behrouz sadeghi amroabadi; zahra emadi
Abstract
This study aims at investigating the role of Corporate Governance in the financial stability of banks listed at the Tehran Stock Exchange from 2012 to 2018. Corporate governance is a good mechanism for controlling risks within firms. Corporate Governance relationships for shareholders in a specialized ...
Read More
This study aims at investigating the role of Corporate Governance in the financial stability of banks listed at the Tehran Stock Exchange from 2012 to 2018. Corporate governance is a good mechanism for controlling risks within firms. Corporate Governance relationships for shareholders in a specialized and independent position with systematic risk in the banking sector is very important. Specifically, corporate governance of shareholders for larger banks which are part of the security networks are at higher risk. They try to pass on the risk to taxpayers. This is descriptive-analytical, applied research using post-quasi-experimental data collection method in the area of positive financial research, and was performed using multivariable regression and econometric models. The results show that the effect of having two CEO’s on financial stability is negative and significant, the effect of institutional shareholders on financial stability is positive and significant, and the effect of government ownership variable on financial stability variable is negative and significant. Moreover, the effect of the ratio of independent board members and the number of board members on financial stability is positive and significant.
atefeh khosravi; abbas arabmazar
Abstract
One of the main activities of banks is providing financial services such as payment of facilities. An important part of the facilities granted by banks in the form of deferred, doubtful receivables, and non-receivables are not paid back to the banking system. In such circumstances, the quality of bank ...
Read More
One of the main activities of banks is providing financial services such as payment of facilities. An important part of the facilities granted by banks in the form of deferred, doubtful receivables, and non-receivables are not paid back to the banking system. In such circumstances, the quality of bank assets is lowered, and this causes problems for the cash flow and liquidity management of the bank. This causes serious problems to the current situation of the banking system. This paper discussed the relationship between asset quality, non-interest income, and profitability of banks listed on the Tehran Stock Exchange. For this purpose, non-interest income, independent variable, profitability, and risk-adjusted profit were considered as dependent variables for data related to 17 banks from 2011 to 2018 To investigate this, two regressions were used; in the first regression, the effect of ownership type in moving towards non-interest income on profits and adjusted profits at the private and state-run banks, and in the second regression, the effect of bank asset quality in moving towards activities that generate non-interest income were studied. Estimates indicate that high quality of assets has a positive and statistically meaningless effect on the banks’ adjusted profits and profits, and the index of bank income diversity with the profits and banks' adjusted profits shows a negative but significant effect.
MASOUD ERFANIAN DANESHVAR; Ahmad Shaabani Kelishomi; HASSAN KOUHI
Abstract
Today, the tools and services provided in the Islamic framework have successfully encouraged economic firms to be active in this field. This can be due to the success of Islamic banking in competing with conventional banks in gaining their trust in the provision of services. In this study, to clarify ...
Read More
Today, the tools and services provided in the Islamic framework have successfully encouraged economic firms to be active in this field. This can be due to the success of Islamic banking in competing with conventional banks in gaining their trust in the provision of services. In this study, to clarify this issue, the cost efficiency of banks has been measured and a comparison has been made between Islamic and conventional banks. The reason is that efficiency is an indicator that can provide an overview of activity results. Moreover, Islamic and conventional banks are both required to minimize the costs. To calculate the efficiency, the information of the banks of MENA region and STATA software was used for 188 banks from 2012 to 2016. Based on the results obtained, using the stochastic frontier analysis (SFA) method, it can be stated that Islamic banks in the region have been more efficient than conventional ones.
