ISSN: 2308-0876
NOTE: THIS JOURNAL IS SHIFTED TO NEW
WEBSITE (www.kwpublications.com)
Open access
Regarding the analysis and stability of both fiscal and banking sectors, the link between business cycles’ fluctuations and banks’ profitability has been highly underscored up to this point. Macroeconomics conditions can impact banks’ performance, thereby they are possible to affect other economic sectors too. The present paper, based on Arellano and Bond (1991) GMM model, examines the impact of macroeconomic variables on Iran Melli Bank’s profitability. Paper’s respective data were extracted from Iran Melli Bank’s balance sheets and Iranian Central Bank temporal series data for the period of 1992-2014. Research findings demonstrate that there is a significant relation between business cycles’ fluctuations and Iran Melli Bank’s profitability, accordingly, in addition to downsizing itself for gaining more profits, it should consider investment and and the quality of its production for recession era and also improve its state of liquidity for the boom period.
N/A
N/A
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode