Determinants of Profitability in Banking Network of Iran

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Abstract:

This paper seeks to investigate the determinants of banking network profitability in Iran from 2007 to 2012. The results of our study indicate that both bank-specific factors and macroeconomic factors influence banks’ profitability in Iran. Results confirm that bank profitability is significantly influenced by investment to total assets ratio, non-performing loans to total assets ratio, and time deposit to total assets ratio. Among external factors, it turns out that economic growth rate has a significant positive impact on bank profitability. JEL Classifications: C23, G21, M20

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Journal title

volume 9  issue None

pages  1- 22

publication date 2014-10

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