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Showing 3 results for Financial Stability
Neda Akhlaghi Modiri, Abdollah Khoshnoodi, Javad Harati,
Volume 17, Issue 4 (3-2018)
Abstract
In this paper, the effect of government intervention in the banking sector (financial repression) on banks’ financial stability is investigated during 2001-2013. To measure the index of government intervention in the banking sector, three variables including real interest rate, credits directed by banks and government debt to banks are combined using principal component analysis. Furthermore, the z-score index is applied to measure the financial stability in the banks. Data are extracted from balance sheets and income statements of the banks. Results from a panel of 14 banks show that the intervention of government in the banking sector is of significantly negative effect on financial stability of these banks and therefore increases their financial vulnerability. Moreover, an increase in size of bank improves the financial stability, but higher debt-to-asset ratio increases the banks’ financial vulnerability.
Mr. Abdolreza Iesvand Heidari, Dr Mir Hossein Mousavi, Dr Saleh Ghavidel, Esmaeel Safarzadeh,
Volume 22, Issue 3 (9-2022)
Abstract
The purpose of this article is to investigate the effects of macroeconomic variables such as exchange rate, interest rate, economic growth and real money residual growth on the financial stability in the Iranian insurance industry. For this purpose, Markov switching method is used. The ability to account for changes in the relationship between macroeconomic variables and the financial stability of the insurance industry over time is one of the most important features of the Markov switching method. The period under study is from the first quarter of 2005 to the fourth quarter of 2015. The results show that the effects of macroeconomic variables during the first regime (including the first quarter of 2005 to the third quarter of 2008) and the second regime (including the fourth quarter of 2008 to the fourth quarter of 2015) on financial stability of the insurance industry are different. So that the effects of exchange rate, interest rate and economic growth on the financial stability of the insurance industry in the first regime are the opposite of those of the second regime. This is while the growth of the real balance of money has a direct link to the financial stability of the insurance industry in each round of the regime, but in the second regime, which is a recessionary regime, its effect on financial stability is insignificant. Also, the findings show that the stability of the first regime is more than the second regime, so that if the insurance industry is in regime one in the previous period, with a probability of 94% it will be again in regime one.
Volume 25, Issue 2 (7-2021)
Abstract
Banks as one of the influential financial institutions in the economy, their financial performance and financial stability are considered by many governments. How the relationship between bankschr('39') financial performance and financial stability works in times of financial crisis is also very important. Therefore, due to the necessity of this study, the purpose of investigating the effect of financial performance criteria on the financial stability of banks in the financial crisis among banks listed on the Tehran Stock Exchange was conducted. The sample studied in this research included 11 banks (all banks) listed on the Tehran Stock Exchange for a period of six years from 1392 to 1397. Data analysis and research hypotheses were performed using combined regression by EViews10 software. Hypothesis analysis using the Generalized Least Squares (EGLS) method at 95% confidence level showed that return on assets and return on equity have a positive and significant effect on the financial stability of banks. Also, in times of financial crisis, the return on equity leads to an increase in the financial stability of banks.
