جستجوی مقالات مرتبط با کلیدواژه "bank system" در نشریات گروه "اقتصاد"

Aim and Introduction :

Over the past two decades, the banking system around the world has undergone significant changes in its operating environment, and several internal and external factors have influenced its structure and performance. Despite all these changes, the banking system remains the main source of financing economic activities in many countries. Therefore, evaluating the performance of the banking system is important. Profitability is one of the influential factors in evaluating the performance of banks. Thus, it is necessary to know the effective internal and external factors. The main purpose of this paper is to evaluate the impact of the concentration index on the profitability of the banking industry. On the other hand, banks as established and organized institutions play an important role in attracting stagnant capital and transferring it to productive sectors, as well as meeting the needs of investors. Since a competitive environment in the banking system can increase efficiency and facilitate financial transactions, identifying the market structure of the banking industry is important for policymakers and banking operators, because it can be the way to remove the obstacles in creating a competitive market.The policy makers could be selected the polices that achevied the economic goles.

In order to achieve this goal, the impact of factors affecting the risk and profitability of banks, we especially use the concentration index as one of the dimensions of the market structure in the banking industry. The method of estimation is generalized method of moments (GMM).For this purpose, concentration in the banking industry has been measured using the Herfindahl-Hirschman index. In addition, six control variables including capital adequacy, central bank assets ratio, deposit ratio, liquid assets ratio, credit ratio and cost-to-income ratio have been selected as explanatory-control variables. In this way, the explanatory variables of banks' profitability include bank-specific factors. Return on total assets and bank stability index have been used as profitability and risk criteria of banks. Also, the situation of the organized monetary market of 52 countries of the Organization of Islamic Cooperation was studied over the period 2005-2019.

Based on the findings of the research, the effects of independent variables in the profitability model are statistically significant and have positive effects on the profitability of banks. Regarding the main hypothesis of the research, i.e. the effect of the concentration index on the profitability of the banking system, it can be seen that the increase in market concentration has increased the profitability, which has a significant coefficient of 0.003817, which confirms the Structure-Conduct-Performance(SCP) hypothesis. In other words, based on this hypothesis, as the degree of market competition decreases, it becomes possible to earn higher profits. In addition, independent variables with lag of time (banking stability index, capital adequacy and return on assets) and the ratio of loans to deposits and the ratio of central bank assets have positive and significant impacts on risk.

Experimental results have shown that the each of the independent variables has positive and significant effect on risk and profitability. The estimation results have shown the positive effect of the market concentration index on banks' profitability. In this way, in the periods when the concentration in the banking industry is higher, the profitability of the banks is high and with the increase in the level of concentration, the profitability of the banks has increased. As stated in the theoretical foundations, there are various theories regarding the relationship between concentration and profitability of banks. Although these theories differ on how to create this relationship, almost all of them emphasize that increasing concentration increases the profitability of banks and reduces competition. In other words, these theories predict that the relationship between concentration and profitability is positive. The result of fitting the research model shows a positive and significant effect of the concentration index on the return on total assets. This means that increasing market concentration has increased profitability. According to the obvious realities in the economies of the sample countries, the intensity of concentration in the banking industry have significant consequences for the profitability of banks by affecting the efficiency and effectiveness of resources.

The banking system, as one of the most effective sectors of the economy, by collecting a significant part of the available liquidity and directing it to the productive sectors, causes economic prosperity.The profitability of banks depends on a set of internal and external factors, of which liquidity management is the most important. In order to earn profit, banks must manage their liquidity in such a way as to meet their obligations and avoid wasting investment opportunities. In this research, by examining the effective indicators on liquidity management, a composite index that represents the level of bank liquidity management was calculated and introduced. Then, using the annual data of 16 banks in the period (2006-2021), the effect of liquidity management on banks' profitability was investigated using the generalized moments method (GMM), two-stage Arellano-Bond. The results show that liquidity management has the most positive effect on the profitability of banks, so that in private and semi-state banks, the intensity of this effect is greater than in state banks.

Capital adequacy ratio is a key indicator in analyzing the situation of the bank, according to which it can be understood to what extent the bank's assets are invested in a suitable portfolio and in terms of risk and capital use in various assets. Among the factors that strengthen the capital adequacy ratio is the issuance of sukuk, which has received more attention, especially after Basel III (the third Basel Accord). For this purpose, the data of 15 selected banks and credit financial institutions accepted in the Tehran Stock Exchange during the period 2014-2020 has been used. Data analysis was performed using panel data method. Findings showed that the development of the Sukuk market has had a positive and significant effect on the capital adequacy ratio of banks, which means that with the increase in the development of the Sukuk market, banks have the opportunity to invest in high quality Sukuk. This reduces the share of risk-weighted assets (denominators of capital adequacy ratio) and thus the presence of a developed sukuk market helps banks to finance their operations at a very low cost and in a timely manner. In turn, will lead to strengthening the capital adequacy ratio of banks.

In this paper, used the system GMM estimation technique to study the effects of the financial development on Sukuk markets by using a panel dataset of 11 countries from 1995 to 2015. At the First, research findings shows that Sukuk and bank financing are substitutes. Economies where banks play a key role in providing private credit issue less Sukuk. Second, the evidence shows that Sukuk are complements to bonds and stocks. More Sukuk are issued in market-oriented economies. Finally, this paper shows that the 2008 global financial crisis has a positive effect on Sukuk markets development.

In most of countries, banks are one of the important parts of the financial system and have a considerable role as fiscal intermediates on getting economic growth and development.Generally, in every country, banks are the main basics of banking system especially in developing countries where capital markets are not developed; hence, evaluating banks’ performance is important. Competition and risk are two important factors that have effect on performance. In Iran, along with entry of private banks, demands for different types of bank services has increased in that banks are looking for more proportion of market share and more profitability.
The goal of the present research is to analyze profitability, as a performance index, of banking system in Iran. This research can be distinguished from former studies in that it uses variables like diversification index of bank operations, capital market development, and manpower productivity. In general, there are three theories that explain the relationship between market structure and performance. These theories are SCP hypothesis, efficient-structure hypothesis, and quiet life hypothesis.
The SCP view represents a positive relationship between profitability and market concentration since banks can collude and get a more profit.
Efficient-structure theory was first coined by Demsetz in 1973. He said that bank profitability is extracted from efficiency. He maintained that more efficient banks have a more ability to increase its market shares and sizes that let them be more concentrated and gain higher profit.
The quiet-life hypothesis predicts a negative relation between concentration and profitability in which the firms with a higher market power tend to be inefficient so that its authorities and managers just charge the monopolistic profit and do not make an considerable effort. This research investigates profitability determinants of banking system in Iran during2003-2014.To this aim, 33 banks were selected. Two softwares, namely, Eviews.7 and Stata.14 were used. According to the Tan model (2015), the equation includes:Where:ROA: return on assets (profitability index)
Liq: liquidity index
Div: diversification index
Com: index of expenditure management
Pro: manpower productivity
Risk: risk index
HHI: concentration index (Herfindahl- Hirschman)
Cmd: development index of capital market Before estimating the model, test of stationarity must be done. The results of four stationarity tests (LLC, IPS, ADF-Fischer and PP-Fischer) shows that all the variables are stationary.
Homogeneity test should be done in the next step.
Considering autocorrelation and heteroskedasticity problems in model, GLS method should be used for estimation.
The results show that all the coefficient are significant, statiscally. The probability of F-statistic represents that the regression is significant, generally. The R-squred statistic indicates 99 percent of dependent variable variations be explained by the regressors. Variables liquidity, diversification and risk have got a negative effect while the rest, have influenced profitability, positively. When the risk increases one unite, profitability would decreases 0.009 unit.With regard to concentration coefficient, it influences profitability,positively. In other words, SCP hypothesis be confirmed in banking system of Iran. The coefficient of HHI shows that if concentration in banking system increase one unit, profitability would increases 0.193. :This research investigated the determinants of banking profitability in Iran with respectto market structure and risk variables. The results gained using fixed effect and GLS procedures showed that both hypotheses were confirmed,and that concentration influenced profitability positively while risk had a negative effect on it.
Considering the results, the following suggestions are made:1.Negative sign of the diversification index shows that it is better that banks focus on traditional activities (giving loans).
2.Concentration influences profitability positively; hence, banks should increase proportions from the market.
3.The sign of risk index shows that banks should pay attention to quality of loans or paying them back will be delayed.
4.The positive coefficient of productivity represents the importance of this factor in that banks should protect their staff through several ways like education, and issueslike peyments and salary so thatit can lead to productivity and finally profitability.