Journal of Monetary and Banking Research
Year:2018 | Volume:11 | Issue:37|Papers Count:6

Studying the monetary transmission mechanisms help to analyze the effects of the transmission channels and is also useful for identifying the contribution of each channel in monetary transmission. This paper is aimed to investigate the role of housing price, stock prices, exchange rate and credit channels in the monetary policy transmission. Since due to structural changes, non-linear transfer of monetary policies and change in the relationship between variables over time is possible, in this study, we use MSVAR for considering these structural changes in different regimes. This model includes variables like GDP, consumer price index, base of money, land price index, Tehran Stock Exchange index, informal exchange rate, the banks' loans to the private sector which are collected during the 1991Q1 and 2015Q4. The results indicate in the first regime (years before 2006), credit channel in short-term, exchange rate channel in midterm and housing price channel in long-term have the most role in the mechanism of transition to production, While in the regime0 (years after 2006), credit channel in the short run, the housing price channel in the midterm and the stock price channel, in the long run, have had the largest share in the transfer of the effects of money on production. On the other hand, monetary policy in the regime through the channel of the exchange rate and in the regime0 through the credit channel has had the most impact on the price level.

The purpose of this study is to investigate the effect of regulations governing the type of banking activities on the performance of the banking sector in developing countries during the period from 2000 to 2012. In this regard, the effects of non-bank financial and commerce activities restrictions on their capital adequacy ratio are measured. The GMM method has been used to analyze the data due to the endogeneity problem of variables. The results show that the strict restrictions on the banks' activities in the capital and insurance market do not have a significant effect on the capital adequacy ratio. In addition, the more the stricter activities restriction in the real estate sector, the more significantly improved the ratio of capital adequacy. In contrast, increased stringency in non-bank financial activities generally has a negative effect on capital adequacy ratio. Also, increasing the stringency of the restrictions on banking-commerce activities has a negative effect on the of capital adequacy ratio.

Before the financial crisis of 2007-2009, the issue of liquidity was mainly considered as the second risk of the banking industry. After the crisis, economists' attention was drawn to the effects of liquidity and became a major concern for banks. The financial crisis showed that liquidity risk is subject to a series of internal and external factors that their recognition has a significant role in controlling this risk. Therefore, the purpose of this study is to investigate the impacts of internal financial factors and macroeconomic factors on the liquidity of banks. For this purpose, a sample of 16 banks accepted in the Tehran Stock Exchange (TSE) and Farabourse Exchange Market (Over-The-Counter Market (OTC) in Iran) is considered during the years 1389-1394. In this order, the panel data regression method is used. The results indicate that the considered factors (internal and macroeconomic factors) are effective on banks' liquidity. Accordingly, the capital adequacy ratios as an internal financial factor and inflation as a macroeconomic factor are effective on the liquidity of the listed banks in the capital market. However, financial costs, bank size, and capital adequacy ratios are effective factors on the liquidity of listed bank in TSE. Therefore, effective internal and macroeconomic factors on banks liquidity are different across banks listed in TSE and listed OTC.

Market pressure is defined as a monetary problem caused by the excess demand or national currency supply and obliges monetary policymakers to use monetary devices to mitigate the disorders resulted from the fluctuations of national currency value. The present study aims to investigate the behavior of exchange market pressure (EMP)index in Iran’ s economy in the period 1990-4 to 2017-6 using three-regime Self-Exciting Threshold Auto-Regressive model (SETAR). With regard to the nonlinear nature of this index, the results indicate that the low regime of exchange market pressure includes a lower percentage of the observations in the period as compared to the higher regime. It can be concluded that the exchange market pressure has asymmetric behavior in Iran. On the other hand, the beginning of high exchange market pressure in the present decade and its repetition in these years suggests that Iran’ s economy has entered the high regime of exchange market pressure. In other words, the recent changes in Iran’ s economy, namely the sharp decrease of national currency value and high exchange market pressure, were predictable.

Banks play an important role in the country's economy and payment system. With the uptrend of the share of the private sector in the banking system, which does not have the support of the government in delivering its obligations, the risk of bankruptcy has also increased. Factors such as economic recession, inflation, and international sanctions would deteriorate the efficiency of the banking system and eventually result in bankruptcy. If one or more banks experience bankruptcy, it can lead to an economic crisis with significant social, political, and national security implications. One of the main solutions, which has been practiced to avoid bankruptcy during a financial crisis, is bank merger. In this article, the positive effects and outcomes of bank mergers have been studied. The merger of banks is one of the most effective ways to rescue the distressed entity from economic collapse or bankruptcy. Benefits of merging banks include, but are not limited to, increased monetary power within the market due to expanded customer and deposit base, increased capital for the bank, and equity for the shareholders, synergy in lowering general and administrative expenses, overhead costs, savings in expensive infrastructure costs, increased productivity, tax efficiency, lower credit, and operational risks, and eventually higher returns on investments and assets.

To achieve optimal risk-taking in financial institutions, effective corporate governance mechanism, as a risk management tool, perform better than the legal requirements. So, in this research, we investigate the impact of corporate governance on capital adequacy and deposit cost coverage as risk indicators. In this regard, we use Iranian Banks and financial institutions data for the period of 2011-2015. We examine this impact with using Generalized Momentums Method (GMM) estimation method. The results show effective corporate governance enhances capital adequacy and deposit cost coverage ratios and therefore decrease the financial institutions' risk. Also, ownership concentration and risk are associated with nonlinearly. The findings support corporate governance theory that it says the owner's ability to influence bank risk is depended on ownership structure.