Mahshid Shahchera; Alireza Dehgan Nayyeri
Abstract
Asset and liability management includes a set of specialized tools and techniques to create value for shareholders and control risk. The banking system is the heart of every economic system and its performance is affected by many factors such as liquidity risk. Some of the factors involved in liquidity ...
Read More
Asset and liability management includes a set of specialized tools and techniques to create value for shareholders and control risk. The banking system is the heart of every economic system and its performance is affected by many factors such as liquidity risk. Some of the factors involved in liquidity risk include non-performing loans, capital ratios, and bank size. In this research, we try to examine the relationship between the factors affecting liquidity risk and the indicators of the banking system affecting resource and cost management (equity ratio, return on assets and credit risk). In addition, we have evaluated the impact of macroeconomic variables on bank liquidity risk. Using an econometric model with generalized method of moment (GMM) as an estimation approach, we conclude that there are relationship between these variables (independent variables) and liquidity risk.
Abdollah Pakdel Moghanlo; Hasan Kouhi; Sanam Rahimzadeh Kolahi
Abstract
The purpose of this study is to examine the relationship between bank profitability, bankruptcy and credit risk and selected bank sector variables. The study population includes banks accepted in Tehran Stock Exchange from 2009 to 2017. To test the research hypotheses, dynamic panel data model has been ...
Read More
The purpose of this study is to examine the relationship between bank profitability, bankruptcy and credit risk and selected bank sector variables. The study population includes banks accepted in Tehran Stock Exchange from 2009 to 2017. To test the research hypotheses, dynamic panel data model has been used. The results of hypotheses testing indicate that there is a negative and significant relationship between the asset returns of the previous year, cash assets to total assets and the exchange rate with the return on assets. There are positive and significant relationships between the capital adequacy rate as well as inflation rate and the rate of return on assets of banks, between both cash assets to total assets and exchange rate and the return on equity ratio; and vice versa between the economic growth rate as well as inflation rate and the rate of return on salaries. There is a negative and significant relationship between cash assets to total assets, exchange rate and inflation rate and banks' bankruptcy risk. There is a positive and significant relationship between the economic growth rate and banks' bankruptcy risk and there is a positive and significant relationship between credit risk of the previous year, capital adequacy and credit risk of banks, and ultimately there is a negative and significant relationship between net assets and credit risk of banks.
Mansour Ranjbar
Abstract
The failure of the credit market resulting from the asymmetric information space leads to adverse selection and moral hazard. While exploiting the game theory's signaling effect approach, it is possible to modify the phenomena, which provides the motivation for designing the optimal financial contract. ...
Read More
The failure of the credit market resulting from the asymmetric information space leads to adverse selection and moral hazard. While exploiting the game theory's signaling effect approach, it is possible to modify the phenomena, which provides the motivation for designing the optimal financial contract. Based on this, while explaining the effect of signaling the profit sharing ratio of Mudarabah, we seek to answer the following questions. Is the variable profit sharing ratio of Mudarabah a motivational signaling effect for contracting parties in arranging an optimal financial contract? Based on the ROE, how is Mudarabah's performance compared to the other alternative financing methods (debt and equity)? Accordingly, due to the lack of realization of the conditions for the realized Islamic contracts, a simulated model has been used to investigate and answer these questions; so that, when the variable profit sharing ratio decreases the equity returns index increases. Also, based on the sensitivity analysis of the reported return index, Mudarabah contracts are more efficient than the other financing methods mentioned, while reducing the cost of representation, it makes this contract attractive.
Rahim Dabbagh; Hasan Golmoradi; Arash Bagri
Abstract
In this research, the effect of banking factors on the financial performance of Islamic and conventional banking has been studied. In Comparison of Islamic and conventional banking, the effect of banking factors such as capital adequacy, asset quality, bank size, management quality, and profitability ...
Read More
In this research, the effect of banking factors on the financial performance of Islamic and conventional banking has been studied. In Comparison of Islamic and conventional banking, the effect of banking factors such as capital adequacy, asset quality, bank size, management quality, and profitability in the form of CAMEL Model have been investigated and their impact on each of the banking methods has been measured for 10 banks in 5 selected countries. Their profitability has been evaluated based on three models with dependent variables such as asset return rate, return on equity and profit margin and for bank stakeholders; the profitability of the banking system is determined by financial performance. From the analysis of regression models (panel data during 2010-2017), it is determined that Islamic banking in all three models is superior to the conventional banking in bank size indices and cost to income ratio. Also, conventional banking in the model with the rate of return on assets, capital adequacy ratios, loans to deposits and deferred loans to total loans as dependent variables is superior to Islamic banking. It is suggested that Islamic banks in loan payment consider accurate validation of applicants and more detailed justification plans; and develop and promote the Islamic Banking Indicators by launching the Risk Management Committee.
Hamed Farahmand Moein; Mohammad Ebrahim Samavi; Emad Koosha
Abstract
Since the start of the massive banking sanctions in 2011, the effectiveness of the previous methods has become difficult. In this research by creating a questionnaire, views of former directors of Iran's banks on comparing conventional methods of international bank payment have been collected from the ...
Read More
Since the start of the massive banking sanctions in 2011, the effectiveness of the previous methods has become difficult. In this research by creating a questionnaire, views of former directors of Iran's banks on comparing conventional methods of international bank payment have been collected from the perspective of six indicators and analyzed by AHP method. To assess the validity and reliability of the questionnaires, the Cronbach's alpha test is used. In the first distribution of the questionnaire, Cronbach's alpha was 0.7 and by redistributing Cronbach's alpha was 0.73, indicating the reliability of the model, the suitability of the questionnaire questions and their low correlation with each other. The results of the model show that according to international and indigenous standards, the international payment system of Iran should prioritize the methods including open account, advance payment, clean draft, letter of credit, bank guarantee transfer and documentary collection, respectively.
Dana Rezaei; Mohammad Ali Rastegar
Abstract
The objective of this research is to analyze the risks involved in funding public private partnership (PPP) projects with project finance in Iran. PPP structures in Iran cannot achieve the desired objectives such as optimal risk sharing and mitigation due to the lack of suitable instruments to mitigate ...
Read More
The objective of this research is to analyze the risks involved in funding public private partnership (PPP) projects with project finance in Iran. PPP structures in Iran cannot achieve the desired objectives such as optimal risk sharing and mitigation due to the lack of suitable instruments to mitigate legal, regulatory, political, and credit risks. Thus, expected cash flows for loans repayment do not build up and this leads to a decrease in asset quality of banks. In this paper, in order to better manage the project finance loans, the challenges and characteristics of this type of finance are considered; the risks are identified; and finally the risk sharing methods are proposed. The results of this paper show that first, considering the benefits of project finance, it is better to fund projects by project finance. Second, it is recommended that commercial and development banks calculate the probability of default of projects by using the method proposed in this research. Moreover, according to the results of this study in order to prevent bankruptcy and default of companies, it is suggested that in feasibility studies, risk assessment and risk management should be carried out to share or to cover risks.
