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Management Science Letters
ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 2 Issue 6 pp. 1849-1854, 2012

A study on the effect of different factors on profitability of banking system Pages 1849-1854 PDF Download PDF

Authors: Maryam Ghadimi, Mehdi Taghavi, Neda Kassaipour

📋 Author Affiliations:
Maryam Ghadimi1, Mehdi Taghavi2, Neda Kassaipour3
1 Department of Economic, University of Allame Tabatabaei, Tehran, Iran
2 Professor and Faculty member, Department of Economic, University of Allame Tabatabaei, Tehran, Iran
3 Department of Economic, Tarbiat Modares University (TMU), Tehran, Iran
doi 10.5267/j.msl.2012.06.039
✏️ Editor: EditorSeyed jafar Sadjadi ORCID
Crossref Source: CrossRef

🔑 Keywords: Banking system, Econometrics, Profitability, Return on Asset

Abstract: In this paper, we study the effect of different influencing factors on profitability of banking system in Iran for a panel data from 2001 to 2010. The sample of banking system includes ten different banks and two different types of internal and external variables are considered. Internal factors include ownership ratio, ratio of bank customers & apos; deposit to banks & apos; assets, ratio of total loans given to all assets, ratio of total interest free loans on total assets, ratio of interest free revenues on total revenue. External factors include economic growth, actual rate of interest and inflation rate. The proposed model of this paper uses econometrics method to investigate the proposed model and the preliminary results indicate that ownership ratio, ratio of total equity on total assets, along with inflation rate have negative impact on profitability. In addition, the ratio of customers & apos; deposit on total assets, the ratio of total loans on total assets and economic growth have positive impact on profitability.

How to cite this paper
APA: Ghadimi, M., Taghavi, M & Kassaipour, N. (2012). A study on the effect of different factors on profitability of banking system. Management Science Letters, 2(6), 1849-1854.
Chicago/Turabian: Ghadimi, M., Taghavi, M & Kassaipour, N. 2012. "A study on the effect of different factors on profitability of banking system." Management Science Letters 2, no. 6 (2012): 1849-1854.
AMA: Ghadimi, M., Taghavi, M & Kassaipour, N. A study on the effect of different factors on profitability of banking system. Management Science Letters. 2012;2(6):1849-1854.

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📚 Journal: Management Science Letters | 📅 Year: 2012 | 📖 Volume: 2 | 📄 Issue: 6 | 👁️ Views: 2843 | 📊 Crossref:

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