Application of Panel Regression Model in Examining the Effect of Monetary Policy on Bank Profitability

Advances in Mathematical Finance and Applications

مقاله 11، دوره 8، شماره 1، فروردین 2023، صفحه 187-202   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2022.1952584.1700

نویسندگان

Fatemeh Saatichoubar¹؛ Mohammad Mohebbi^{* 2}؛ Yaghoob Zeraat kish³؛ Ebrahim Negahdari⁴

¹Department Of Economics, Qeshm Branch, Islamic Azad University, Qeshm, Iran

²Department of Economics, Faculty of Management and Economics, Hormozgan University, Bandar Abbas, Iran

³Department Of economics, Science and research Branch, Islamic Azad University,Tehran, Iran

⁴Department Of Economics, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

چکیده

Profit is one of the most important factors influencing economic decision making, the changes of which depend on various factors. Banks, as one of the most important business units, have a special reliance on the concept of profitability and their performance is significantly influenced by macroeconomic conditions. Government economic policies are placed. This paper aims at applying the panel regression model to study the effect of monetary policy on the profitability of banks from 2006 to 2018 using data from 30 provinces to find appropriate policy recommendations for decision-making in the banking system. The research method was the use of GMM regression technique in the context of combined data. According to the results, the performance and profitability of banks are improved by the implementation of expansionary monetary policy. However, bank lending and price inflation have a negative effect on banks' performance. According to the results of this study, control variables such as the amount of overdue claims and GDP also had a positive effect on the performance of banks. Also at the macro level, with regard to the negative effects of Expansion monetary policy and the growth of liquidity, with the controlled implementation of Expansion monetary policy, it helps to improve the performance of banks in the banking system.

کلیدواژه‌ها

Monetary Policy؛ Banking Performance؛ Combined Data Regression؛ GMM

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