Mohsen Khoshtinat; Seyedeh Nasim Alavi
Volume 3, Issue 5 , December 2017, Pages 1-29
Abstract
This research aims to identify the influential components on LGD by using Tobit regression on institutional customers of the bank of Industry and Mine. In order to achieve this goal, LGD can be used to calculate the probability of default on the basis of the Basel II agreement. LGD is the amount of loss ...
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This research aims to identify the influential components on LGD by using Tobit regression on institutional customers of the bank of Industry and Mine. In order to achieve this goal, LGD can be used to calculate the probability of default on the basis of the Basel II agreement. LGD is the amount of loss a bank faces when the borrowers default on loan repayment. To accomplish this goal, 204 of institutional customers of bank for an 8 years period (2007-2014) have been chosen as a sample. The results show a significant relation between loan amount, collaterals (excepted promissory notes), industry type and LGD, and no significant relation between loan maturities and LGD.
Hasan Golmoradi; Reza Mohseni; Hossein Golmoradi
Volume 3, Issue 5 , December 2017, Pages 31-52
Abstract
Today, banking system plays a very important role in growth and development of countries. From the very beginning of banks establishment, they have two main and traditional tasks, namely, the equipping and allocation of resources. These two important tasks are implemented so that they collect the people's ...
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Today, banking system plays a very important role in growth and development of countries. From the very beginning of banks establishment, they have two main and traditional tasks, namely, the equipping and allocation of resources. These two important tasks are implemented so that they collect the people's deposits on one hand and put it in various forms of allocation, on the other hand. In performing these tasks, banks face different internal and external barriers that affect their responsibilities. One of the external factors affecting the banking system is the volatile environment of economy and macroeconomic uncertainty. The macroeconomic instability and uncertainty ultimately reflect into two main variables of each economy, namely, production and inflation. This research seeks to investigate the effect of uncertainty and instability of macroeconomic variables (production and inflation) on the resources and expenditures of Iran banking system using GARCH techniques and Error Correction Model (ECM). The results of the research show that the effect of instability and uncertainty of production growth on the growth of resources of the banking system (resource mobilization) is negative and significant and on the allocation of resources (growth of credits) is positive and significant, resulting in increasing the banks' credit risk. Moreover, in this study, the significance of the negative effect of instability of inflation on resource absorption and its positive effect on allocation of resources are not accepted.
Mohammad Javad Mohagheghnia; Yekta Pakniyat
Volume 3, Issue 5 , December 2017, Pages 53-77
Abstract
One of the main components of an effective banking supervision system is its regulatory framework, so that regulatory oversight is not possible without comprehensive regulation. The main purpose of this paper is to assess the simultaneous impact of regulatory prudential regulation on banks' capital and ...
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One of the main components of an effective banking supervision system is its regulatory framework, so that regulatory oversight is not possible without comprehensive regulation. The main purpose of this paper is to assess the simultaneous impact of regulatory prudential regulation on banks' capital and risk-taking behavior using a panel of 20 banks operating in Iran over the period 1385-1394. In this research, it is shown that the prudential regulation increase banks' capital and reduce the risk-taking behavior of banks. Therefore, prudential regulation would increase the banks' prudential behavior by reducing risk and increasing banks' capital, and this also shows that the most of the country's banks have moved in recent years in line with international regulatory frameworks (at least within the Basel I framework). Using simultaneous equations, it is also found out that the bank's profitability does not have a significant relationship with the bank's capitalization level suggesting that Iranian banks do not rely on their domestic resources to build their capital buffer.
Seyyed Abbas Mousavian; Mohammad Naghi Nazarpour; yahya lotfinia
Volume 3, Issue 5 , December 2017, Pages 79-113
Abstract
Several operational models for Islamic banking have been implemented in Muslim as well as non-Muslim countries. Islamic banking activists can learn a wide range of helpful lessons from these implementations. One of the countries in which Islamic banking has been implemented is Indonesia, which has the ...
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Several operational models for Islamic banking have been implemented in Muslim as well as non-Muslim countries. Islamic banking activists can learn a wide range of helpful lessons from these implementations. One of the countries in which Islamic banking has been implemented is Indonesia, which has the largest Muslim population. It has a dual banking system. In other words, in this system, both Islamic banks and conventional banks cooperate with each other. Since Iran is reviewing its banking law, an analysis of their banking model can be helpful.
By using library and Internet resources, this descriptive-analytic study investigates the validity of this hypothesis: Indonesian Islamic banking is relatively comprehensive, legitimate, and efficient. According to this study, there are some shortcomings as far as being comprehensive in mobilization is concerned. Moreover, the bank cannot meet the needs of those who are willing to invest in the bank to “contribute to good deeds” or the ones who would like to “receive fixed interest rates”. With respect to resource allocation, Indonesian Islamic banking cannot fulfill institutions needs for “paying for services” and “buying intangible assets, such as equity and so forth”. This banking model extensively makes use of Mudaraba contract, which is illegitimate according to prominent Shiite and some Sunni scholars. Moreover, it exploits loan agreement in settling the accounts of bank guarantees which is not in line with the essence of banking activity that aims at gaining economic benefits.
On the whole, this paper sheds light on some of the important aspects of Indonesian Islamic banking which can be helpful in reviewing the regulations of Iranian banking system.
Mohammad Ali Dehghan Dehnavi; Aynaz Badali Arekhloo
Volume 3, Issue 5 , December 2017, Pages 115-133
Abstract
The central role of the central bank as the regulator of the monetary and credit system of the country plays the role of a lender of last resort in order to support banks to avoid deficit of liquidity and financial crises. The purpose of this study is to examine the internal factors affecting banks' ...
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The central role of the central bank as the regulator of the monetary and credit system of the country plays the role of a lender of last resort in order to support banks to avoid deficit of liquidity and financial crises. The purpose of this study is to examine the internal factors affecting banks' reliance on central bank resources. In order to calculate the banks' reliance on central bank resources, the ratio of debt to central bank to claims from the central bank has been used. The results from the estimation of the GMM dynamic panel model for 27 banks in Iran during the years 1385-1394 indicate that banks' capital and liquidity have a negative and significant effect and the ratio of facilities to deposits has a positive and significant effect on banks' reliance on central bank resources.
Vahid Bekhradi Nasab; Fatemeh Zholanezhad
Volume 3, Issue 5 , December 2017, Pages 135-168
Abstract
In this study, new methods of financing and their impact on the profitability of companies are investigated in Iran's capital market. New financing methods include rental or leasing Sukuk issuance which can be considered as a suitable alternative for financing companies. Sukuk is an Islamic debt instrument ...
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In this study, new methods of financing and their impact on the profitability of companies are investigated in Iran's capital market. New financing methods include rental or leasing Sukuk issuance which can be considered as a suitable alternative for financing companies. Sukuk is an Islamic debt instrument that is backed by real assets to be released. In this study, financial information of 24 companies listed on Tehran stock exchange, which have attempted to issue Sukuk until the date of preparation of this study, has been studied using the econometric software EViews during the period 2007-2014. Research model employs the OLS regression approach and panel data estimates. Research results suggest that if companies use Ijarah Sukuk, the profit process in these companies is improved and profitability rises by increasing the use of islamic leasing bonds, but Murabaha Islamic bonds do not impact on profitability.
Seyed Mohsen Sajjadi; Mahdi Gholampoor
Volume 3, Issue 5 , December 2017, Pages 169-198
Abstract
With regard to the prohibition of Riba in Islam, it is important to find an alternative to bonds that would be effective for financing the government deficit. In this case securities based on loan contract have been introduced that are not a proper substitute for bonds because these securities are faced ...
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With regard to the prohibition of Riba in Islam, it is important to find an alternative to bonds that would be effective for financing the government deficit. In this case securities based on loan contract have been introduced that are not a proper substitute for bonds because these securities are faced with restrictions to be investigated in this paper.
The present research explains the formation of Tawarruq securities as a proper alternative to bonds in five steps, and by comparing different securities in Islamic countries comes to the conclusion that based on interest free financial instruments, Tawarruq securities can be suitable substitutes for bonds. Therefore, as it is legitimate and relevant to the real market, it is also a proper tool for fiscal policy.
