International Business Management

Year: 2016
Volume: 10
Issue: 11
Page No. 2235 - 2242

The Effect of Changing Capital and Deposits on the Performance of Banks: Banks Listed in Tehran Stock Exchange

Authors : Hamid Reza Shamakhi and Ebadoallah Sheikhipoorian

Abstract: Now a days, banks as the most important element of monetary market play crusial role in the economy of our contry. Among the items of balance sheet, the ratio of regulatory capital has been interested as a new key variable in the monetary transmission mechanism. In this study, changes in capital and deposits and its effect on the performance of banks have been examined. For this purpose, banks listed in the Tehran Stock Exchange within 2001-2014 have been examined and 19 banks were analyzed using data from the financial statements. The results showed a positive relationship between capital and deposits with Return on Assets (ROA) and Net Income (NI). But, there is no significant relationship between capital and deposits with Return On Equity (ROE).

How to cite this article:

Hamid Reza Shamakhi and Ebadoallah Sheikhipoorian, 2016. The Effect of Changing Capital and Deposits on the Performance of Banks: Banks Listed in Tehran Stock Exchange. International Business Management, 10: 2235-2242.

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