Volume 17, Issue 4 (12-2022)
J. Mon. Ec. 2022, 17(4): 437-456 |
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Botshekan M H, Abdollahi Poor M S, Takaloo A, Naeimabadi M. The Impact of Banking Health Indicators on Return on Risk-Weighted Assets (RORWA) index in Commercial Banks: Evidence from Iran. J. Mon. Ec. 2022; 17 (4) : 1
URL: http://jme.mbri.ac.ir/article-1-578-en.html
URL: http://jme.mbri.ac.ir/article-1-578-en.html
Mohammad Hashem Botshekan1 
, Mohammad Sadegh Abdollahi Poor *1 , Amir Takaloo1 , Mojtaba Naeimabadi1
, Mohammad Sadegh Abdollahi Poor *1 , Amir Takaloo1 , Mojtaba Naeimabadi1
1- Finance and Banking Department, Management and Accounting Faculty, Allameh Tabataba'i University, Tehran, Iran
Abstract: (1081 Views)
The purpose of the present research is to introduce and calculate the Return on Risk-Weighted Assets Index (RORWA) in Iranian commercial banks and to investigate the impact of banking health indices on this index. RORWA is more accurate than other risk-adjusted indicators like RAROC or RORAC. Also, newer banking health indicators have been chosen to examine the impact of these indicators on the Return on Risk-Weighted Assets Index (RORWA), which are more contemporary. The statistical population of this study is 16 Iranian commercial banks listed on the Iran Stock Market from 2012 to 2021. The method used in the research is the Ordinary Least Squares (OLS) Regression using the data of the last 9 years of mentioned banks and also based on the statistical significance tests performed, the type of data is Panel Data. First, yearly data have been collected, and then we used Eviews software to analyze the information and test the hypotheses stated in the research. The results show that five of the six banking health indicators, including Capital Adequacy, Asset Quality, Management Quality, Earning Quality, and Systematic Risk, affect RORWA and their relationships with each other are direct. But Liquidity Quality does not affect RORWA index.
Article number: 1
Type of Study: Original Research - Empirical |
Subject:
Monetary Economics
Received: 18 Mar 2022 | Accepted: 26 Nov 2022 | Published: 18 Oct 2023
Received: 18 Mar 2022 | Accepted: 26 Nov 2022 | Published: 18 Oct 2023
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