Evaluation of the Effect of Macroeconomic Variables and Islamic Financing on the Efficiency of Private and Public Banks in Iran

AbstractThe purpose of this article is to examine the effect of macroeconomic variables and Islamic financing (chequk) on the returns of private and national banks, which includes 15 banks during the period of 1384-1396. For this purpose, the Tobit panel data method has been used to estimate the model.The results indicate that chequk, inflation, the ratio of equity to total assets (as a variable of the bank), have a positive and significant effect on the bank returns. The issuance of chequk cause to increase the efficiency and profitability of banks. The results show that government ownership has a negative impact on the banks' returns. So that, with the increase of the government's share of banks, the profitability and consequently the efficiency of banks decreases. Total expenditure to total assets variable also has a negative and significant effect on the bank returns. The results also show that bank size has a negative and significant effect on the bank returns.