1- Assistant Professor of Economics, Tarbiat Modares University , m.zolfaghari@modares.ac.ir
2- M.A. in Economics; Tarbiat Modares University
Abstract: (8036 Views)
This paper aims to investigate the effect of social capital on banking stability in Iran. For this purpose, a sample of 18 public and private Iranian banks is selected over the period 2007-2017, and the System Generalized Method of Moments (SYS-GMM) is used to estimate the research model. The social capital index is proxied by the ratio of the bounced checks to the total traded checks. The results indicate a significant positive impact of social capital on bank stability. Moreover, the ratio of capital to asset and GDP per capita are positively associated with bank stability, but the non-performing loans have negative effects on bank stability.
Article Type:
Original Research |
Subject:
Economics Received: 2018/08/27 | Revised: 2019/07/30 | Accepted: 2019/07/30 | Published: 2019/07/30