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:: Volume 15, Number 18 (6-2017) ::
mieaoi 2017, 15(18): 23-39 Back to browse issues page
Effect of macroeconomic fluctuations on the lending behavior of commercial banks in Iran
Abstract:   (335 Views)

Economic growth of economies is strongly dependent on soundness of financial institutions. many economic activities  are in need of lending from banking system, the distortions in bank lending behavior may lead to economic variables instability and business risk for firms. Therefore, in this research effect of macroeconomic fluctuations on the lending behavior of commercial banks in Iran during 1974-2015 was modeled using AutoRegressive Distributed (ARDL) model. Empirical results showed that lending to commercial banks (Bank loan to asset ratio) have long run relationship with output changes over the business cycle. In other words, the economic recovery leads to acquiring credit risk and more lending of commercial banks. The increase in commercial banks assets that approximate the size of the bank, have a significant impact on the behavior of commercial banks lending. The larger banks can afford to higher risks in lending. Monetary base not only increase bank lending (in terms of the ratio of loans to assets), but in the long run, it reduces lending capacity by a negligible size

Keywords: Macroeconomic fluctuations, the behavior of lending, commercial banks, ARDL.
Full-Text [PDF 224 kb]   (107 Downloads)    
Type of Study: Research | Subject: General
Received: 2017/05/27 | Accepted: 2017/05/27 | Published: 2017/05/27
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Effect of macroeconomic fluctuations on the lending behavior of commercial banks in Iran. mieaoi. 2017; 15 (18) :23-39
URL: http://mieaoi.ir/article-1-452-en.html
Volume 15, Number 18 (6-2017) Back to browse issues page
نشریه اقتصاد و بانکداری اسلامی Islamic Economics & Banking
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