Impact of Macroeconomic and Management Quality Variables on the Profitability of Private Banks; Using Structural Panel VAR Approach

Message:
Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
Considering the importance of the Banking system in Iran economy and taking into account the strategic objectives of bank’s activities to improve their performance indicators, the main objective of the present study was to investigate the impact of internal and external factors affecting the three profitability components; including the return on assets (ROA), return on equity (ROE) and the net income margin (NIM) indicators of 13 private banks' in Iran for the period 2006 to 2016; using structural autoregressive vector panel model. For this purpose, the macro level factors responsible for profitability of banks are divided into internal components; including the quality of management, asset quality, capital adequacy and liquidity and external components such as inflation rate, interest rates, the growth of GDP, and the development of the stock market. The results indicate that the percentage of coverage of liquidity and the ratio of Non-performing loans to total loan as internal bank variables have a negative effects and the growth of GDP as the external variable has positive effect on the profitability components.
Language:
Persian
Published:
Journal of Economic Modeling Research, Volume:9 Issue: 34, 2019
Pages:
201 to 254
https://www.magiran.com/p1945537  
سامانه نویسندگان
  • Nader Mehregan
    Author (4)
    Professor Faculty of Economics, Bu-Ali Sina University, Hamedan, Iran
    Mehregan، Nader
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