Investigating the effect of central bank intervention on the profitability of commercial banks in the country: a mild transfer regression approach

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

Atyabi Azam Sadat; DAGHIGHI ASLI ALIREZA; Geryenjad Gholamreza

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: Financial Economics Year:2023 | Volume:17 | Issue:2 (63) Page(s): 247-272

Download Full-Text

Persian Verion

View:

102

Download:

Cites:

Information Journal Paper

Title

Investigating the effect of central bank intervention on the profitability of commercial banks in the country: a mild transfer regression approach

Author(s)

Atyabi Azam Sadat | DAGHIGHI ASLI ALIREZA | Geryenjad Gholamreza | Issue Writer Certificate

Keywords

Central bank policy intervention

foreign exchange market pressure

profitability of commercial banks

gentle transfer regression

Abstract

In the present study, in the first stage, the central bank's policy intervention index and foreign exchange market pressure were calculated, and then, using gentle transfer regression (STR), the effect of central bank intervention on the profitability of the country's commercial banks was investigated. According to the model results,In 24 of the 30 years surveyed, the country's economy has faced increasing pressure from the foreign exchange market. In other words, between 1370 and 1399, the central bank's intervention activities eliminated an average of 24% of the foreign exchange market pressure. Also, the results of STR model estimation show the positive effect of economic growth rate variable on bank profitability and the negative effects of central bank intervention, stock return rate, credit risk, inflation rate and interest rate on the profitability of commercial banks. The negative coefficient of the central bank intervention index can indicate that the central bank, in the face of increasing positive deviations in the exchange rate, is pursuing a decline in the growth of its foreign reserves. In other words, with a further increase in the supply of foreign exchange in the market, its value decreases and the exchange rate return to its long-term path. On the other hand, if there is a negative deviation in the exchange rate of the central bank, by increasing the volume of foreign reserves and reducing the supply in the foreign exchange market, it can increase this rate and approach its long-term path, which is in line with existing theories. This is the context.

Cites

No record.

References

No record.

Cite

APA: Copy

Atyabi, Azam Sadat, DAGHIGHI ASLI, ALIREZA, & Geryenjad, Gholamreza. (2023). Investigating the effect of central bank intervention on the profitability of commercial banks in the country: a mild transfer regression approach. JOURNAL OF FINANCIAL ECONOMICS (FINANCIAL ECONOMICS AND DEVELOPMENT), 17(2 (63) ), 247-272. SID. https://sid.ir/paper/1055200/en

Vancouver: Copy

Atyabi Azam Sadat, DAGHIGHI ASLI ALIREZA, Geryenjad Gholamreza. Investigating the effect of central bank intervention on the profitability of commercial banks in the country: a mild transfer regression approach. JOURNAL OF FINANCIAL ECONOMICS (FINANCIAL ECONOMICS AND DEVELOPMENT)[Internet]. 2023;17(2 (63) ):247-272. Available from: https://sid.ir/paper/1055200/en

IEEE: Copy

Azam Sadat Atyabi, ALIREZA DAGHIGHI ASLI, and Gholamreza Geryenjad, “Investigating the effect of central bank intervention on the profitability of commercial banks in the country: a mild transfer regression approach,” JOURNAL OF FINANCIAL ECONOMICS (FINANCIAL ECONOMICS AND DEVELOPMENT), vol. 17, no. 2 (63) , pp. 247–272, 2023, [Online]. Available: https://sid.ir/paper/1055200/en

Related Journal Papers

No record.

Related Seminar Papers

No record.

Related Plans

No record.

Recommended Workshops