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The Impact of Repo and Slope of Yield Curve on Bank Profitability in Iran
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Zakiyeh Rahimi1   , Javad Harati2 |
1- Master of Economics, Bojnourd University (Corresponding Author)
2- Assistant Professor of Economics, Bojnourd University |
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Abstract: (3464 Views) |
| Profitability is one of the most important indicators of banks' performance. Therefore, studying the state of profitability of the banking system and the factors affecting it is of particular importance. The main purpose of this study was to investigate the effect of various factors on the profitability of active commercial banks in the banking system of Iran during the period of 1384-1388 using a dynamic panel model (GMM), on three indicators of return on equity (ROA), return on equity (ROE) ) and net income income (NIM). The general results of estimated models indicate that financial leverage variables and asset growth rate have a negative and significant effect on the return on asset and return on equity, and has a positive effect on net interest margin. GDP growth rates, Repo, Slope of yield curve and Hirschman Harpindal Index have a positive and significant effect on the return on Asset and return on equity, and have a negative effect on net interest margin. But the impact of the Hirschman Harpindal Index on equity returns is meaningless. |
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| Keywords: Interbank interest rate, generalized torque method, net interest income |
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Full-Text [PDF 1297 kb]
(2107 Downloads)
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Article type: Research |
Subject:
Special
Received: 2020/03/29 | Accepted: 2020/10/20 | Published: 2020/11/22
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