Impacts of Credit Risk and Liquidity Risk on Performance of Banks

Document Type : applied

Authors

1 Ph.D Condidate, Economics, Bu Ali Sina University, Hamedan, Iran

2 Proffessor, Economics, Bu Ali Sina University, Hamedan, Iran

Abstract

Along with globalization of economy and strengthen competition among the banks, profit margin of traditional banking activities be falled and caused increasing of the banks risk. Risk is one of the effective factors on bank performance that be attended because of fiscal crisis in recent years. This research investigates impacts of credit and liquidity risk on performance of banks in Iran. For this end, 31 banks during 1386-1393 by annual data are investigated. Findings by fixed effect and GLS method represents negative effect of credit and liquidity risk on banks profit margin as performance index. Other results show negative effect of diversification index and positive effect of concentration and cost management on profitability.
JEL: G21, G29, G32
How to cite this paper: Ferdosi, M. & Fotros, M,H. (2017). Impacts of Credit Risc and Liquidity Risk on Performance of The Banks. Quarterly Journal of Risk Modeling and Financial Engineering, 2(1), 22–41. (In Persian)

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References

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