Evaluation of Factors Affecting the Performance of the Banking System in Iran with a Productivity Index Approach
نویسندگان
1 Associate Professor, Department of Economics and Management, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 Department of Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
3 Department of Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
4 Assistant Professor, Department of Economics and management, Islamic Azad University, Science and Research Branch, Tehran, Iran
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چکیده
Before the global financial crisis, high levels of operational productivity, profitability, and market values raised doubts about the accuracy of banking performance assessment. Consequently, methods for examining the efficiency, productivity, and effectiveness of banking operations have attracted the attention of policymakers and researchers in the banking field. Resource limitations on the one hand and the increasing demand for them on the other hand highlight the importance of focusing on productivity in various dimensions of an economy. Given the undeniable significance of productivity in the banking system of the country, this research aims to investigate the factors affecting the productivity of a selected group of banks listed on the Tehran Stock Exchange, using the Solow residual approach throughout 2010-2017, employing the Generalized Method of Moments (GMM). According to the results of this study, labor force, capital accumulation, and return on assets positively impact the productivity of the selected banks, while the number of branches was found to be statistically insignificant. Finally, some recommendations are provided.
