Sorayya Rafiee; Karim Emami; Farhad Ghaffari
Abstract
Banking system, as one of the most important parts of macroeconomy, plays a vital role in general economic equilibrium and transition of economic shocks in the society. Because of that, it is of sensitive role in national economy. In addition to implementing dictated monetary policies of central banks, ...
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Banking system, as one of the most important parts of macroeconomy, plays a vital role in general economic equilibrium and transition of economic shocks in the society. Because of that, it is of sensitive role in national economy. In addition to implementing dictated monetary policies of central banks, they as any economic business, pursue the goal of increasing their profitability. In this study, we use Dynamic Stochastic General Equilibrium (DSGE) and take into account five economic sectors, namely households, entrepreneurs, mediator banks, distributors and government, to study the reaction of banks to emergence of monetary shocks. For this purpose, the authors seek to make use of long-term macroeconomic parameters. The results of our model show that, upon emergence of a positive shock on interest rate, due to the decrease of request for loan and the amount of lent money, the rate of loaning and as a result, the profit of banks is reduced, and in the case of a positive oil shock, the amount of market liquidity increases so the rate of loaning decreases and the scale of investment increases and finally, the households’ willingness to save is reduced. Therefore, the outcome of decrease of lending rate and decrease of deposits leads to a reduction in banks’ profitability.
Mohamad Javad Mohaghegh Nia; Ali Akbari Bavafa Gelyan
Abstract
Microfinance programs emerged in mid 1980s. So, microfinance can be labeled as a new phenomenon. The reason for emergence and rapid development of microfinance programs can be weakness of former development strategies, especially those of financial development. In this research by using a three-dimension ...
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Microfinance programs emerged in mid 1980s. So, microfinance can be labeled as a new phenomenon. The reason for emergence and rapid development of microfinance programs can be weakness of former development strategies, especially those of financial development. In this research by using a three-dimension Delphi query, the important factors affecting microfinance at Iran have been explored. In the resources side, deposits are composed of Qard al-Hasan, donation, subrogation and saving. In the uses side, the loans are divided into consumption (general consumptions and emergencies) and investing purposes. The institutions active in microfinance are divided into two groups of banks (commercial banks and financial holdings) and financial institutions (for profit and non-profit). The group lending and solidarity responsibility were underlined at legal-jurisprudence. At the application aspects, emphasis on usage of electronic systems and separate report of loans by their types and contracts is noticeable.
