IDEAS home Printed from https://ideas.repec.org/a/mbr/jmbres/v2y2010i5p175-202.html
   My bibliography  Save this article

The Effect of Concentration in the Banking Industry and other Factors on the Profitability of State Banks (in Persian)

Author

Listed:
  • Nouri Borojerdi, Peyman

    (Iran)

  • Jalili, Mohamad

    (Iran)

  • Mardani, Fatemeh

    (Iran)

Abstract

Banks profitability is necessary for determining the economic stability¡ It can be studied from micro and macro aspects of economic consideration. Regarding the factors affecting profitability¡ there have been many studies in Iran¡ however in none of them¡ the influence of concentration on profitability has been considered. This study investigates the relationship between banking industry concentration and profitability of state banks. To test the effect of concentration on banks profitability¡ based on research literature¡ three aspects of concentration in banking industry including concentration in assets¡ concentration in bank deposits and concentration in credits were considered and HHI index was used to measure concentration in the industry. Also¡ six control variables¡ including bank capital¡ bank size¡ bank efficiency (company-specific factors)¡ interest rates¡ economic development and the level of capital market (macroeconomic factors) as control (explanatory) variables were selected and measured. The profitability of banks was measured using the ratio of return on assets (net income divided by total assets). Findings of study show that banking industry concentration have positive relationship with bank profitability. JEL Classification: E58, L16, P24, P10

Suggested Citation

  • Nouri Borojerdi, Peyman & Jalili, Mohamad & Mardani, Fatemeh, 2010. "The Effect of Concentration in the Banking Industry and other Factors on the Profitability of State Banks (in Persian)," Journal of Monetary and Banking Research (فصلنامه پژوهش‌های پولی-بانکی), Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 2(5), pages 175-202, December.
    • Handle: RePEc:mbr:jmbres:v:2:y:2010:i:5:p:175-202
    as

    Download full text from publisher

    File URL: http://jmbr.mbri.ac.ir/article-1-58-en.pdf
    Download Restriction: no
    File URL: http://jmbr.mbri.ac.ir/article-1-58-en.html
    Download Restriction: no
    File URL: http://jmbr.mbri.ac.ir/article-1-58-fa.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pejman Ebrahimi & Maria Fekete-Farkas & Parisa Bouzari & Róbert Magda, 2021. "Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach," JRFM, MDPI, vol. 14(6), pages 1-15, June.

    More about this item

    Keywords

    Central Banks and Their Policies; Industrial Organization and MacroEconomics; National Income; Economic Systems;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mbr:jmbres:v:2:y:2010:i:5:p:175-202. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. E. (email available below). General contact details of provider: https://edirc.repec.org/data/mbcbiir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.