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Explaining the Pattern of Operational and Credit Risk in Banks with an Emphasis on Ethical Validation of Customers
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S.S Abolghasemi1   , S.A Nabavi Chashemi 2, E Memarian3 , M Taghipour4 |
1- 1. Ph.D. Student in Financial Engineering, Islamic Azad University, Babol branch, Babol, Iran.
2- 2. Dept. of Financial Management, Islamic Azad University, Babol Branch, Babol, Iran. , Nabavi@baboliau.ac.ir
3- 3. Dept. of Economics, Islamic Azad University, Babol Branch, Babol, Iran.
4- 4. Dept. of Industrial Engineering, Islamic Azad University, Shahriar Branch, Shahriar, Iran. |
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Abstract: (216 Views) |
Background: Banks and financial and credit institutions in Iran have a special position and importance as an influential financial institution, and the possible crisis or bankruptcy of a bank in the country can affect other financial institutions or the entire financial system and even macroeconomic variables. . Therefore, the purpose of this article is to explain the pattern of operational and credit risk in banks with an emphasis on ethical validation of customers.
Method: The present research is a descriptive and applied research. From the 318 banks and subsets of active banks that existed in 2016 to 2018, according to the limitations, 108 companies were selected as samples. Excel software was used to calculate and prepare the research variables and also to extract the descriptive statistics of the research variables, and to estimate the regression models and test the hypotheses, the Eviuse statistical software version 10 was used.
Results: It indicates that the operational risk variable (with the measure of equity ratio) has a positive and significant relationship with banks' stock returns. Also, both criteria related to the variable of internal factors i.e. deposit volume and liquidity volume also have a positive and significant relationship with stock returns of listed banks. However, it was found that among the three criteria related to credit risk variable, i.e. credit growth, profitability and capital ratio, capital ratio has no significant relationship. Profitability has a positive and significant relationship. Ethical validation risk has a negative and significant relationship with the target variable, i.e. stock returns of active banks in Tehran Stock Exchange.
Conclusion: The results showed that the risk components were very important in the efficiency and inefficiency of Iranian banks. One of the criteria for measuring the health of banks is the ratio of non-current bank claims to granted facilities, which measures the level of banks' risk in the ethical validation of customers.
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| Keywords: Operational And Credit Risk, Ethical Validation, Equity, Stock Returns |
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Full-Text [PDF 493 kb]
(108 Downloads)
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Type of Study: Applicable |
Subject:
Special
Received: 2023/08/5 | Accepted: 2023/10/12 | Published: 2024/08/31
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