The role of capital adequacy requirements in money creation in the banking system

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.

Shoaleh Moslem; Zamanzadeh Hamid

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

Journal Paper

Paper Information

Journal: Journal of Fiscal and Economic Policies Year:2023 | Volume:11 | Issue:41 Page(s): 165-195

Download Full-Text

Persian Verion

View:

Download:

Cites:

Information Journal Paper

Title

The role of capital adequacy requirements in money creation in the banking system

Author(s)

Shoaleh Moslem | Zamanzadeh Hamid | Issue Writer Certificate

Keywords

Money CreationQ4

Capital Adequacy ratioQ4

Exchange rateQ4

InflationQ4

SVAR modelQ4

Abstract

One of the most important factors affecting the creation of liquidity in Iran's banking network is the Capital Adequacy ratio. Based on this, the present study aims to investigate the role of capital adequacy requirements on Money Creation in the banking system based on Bal III committee as well as the effects of other variables such as Inflation, Exchange rate, non-performing loans, and profitability of the banking network in Iran in the period of 2010: 1-2021: 1 with seasonal frequency using structural vector autoregression model. The results show that a positive shock to Inflation, Exchange rate, and profitability of banks increase Money Creation. But, a positive shock to Capital Adequacy ratio and non-performing loans has not had a significant effect on Money Creation. This finding indicates that the banking system has practically not reacted to changes in capital adequacy due to the lack of executive guarantee in applying the capital adequacy requirements. And as a result, capital adequacy requirements have not been able to play their role in restricting Money Creation. Also, the results show that the creation of bank money in Iran is mainly influenced by macro-level variables so that Inflation and Exchange rate respectively played the most important role in explaining the changes in the creation of bank money.

Cites

No record.

References

No record.

Cite

Related Journal Papers

No record.

Related Seminar Papers

No record.

Related Plans

No record.

Recommended Workshops