Do The Profits And Losses Of Ready-To-Sell Bonds Of Banks Affect Their Lending?

Fereshteh Rashidfard

Abstract


In this study, we addressed the issue of whether the profits and losses of banks' past maturities affect their lending or not. Seven banks surveyed over 10 years to determine the effect of past maturity gains and losses on bank lending. The research model was a statistical model that showed that the profit and loss of ready-to-sell securities explain 77.2% of banks' lending, ready-to-sell securities. The specific profit and loss of the bank directly affect the lending rate of banks. It seems that the profit and loss of ready-to-sell bonds is a good indicator for predicting the level of bank lending in Iran.

Full Text:

PDF 116-119

References


Adwan, Sami, Alhaj-Ismail, Alaa, & Girardone, Claudia. (2020). Fair value accounting and value relevance of equity book value and net income for European financial firms during the crisis. Journal of International Accounting, Auditing and Taxation, 39, 100320.

Barlev, Benzion, & Haddad, Joshua Rene. (2003). Fair value accounting and the management of the firm. Critical perspectives on accounting, 14(4), 383-415.

Chi, Qinwei, & Li, Wenjing. (2017). Economic policy uncertainty, credit risks and banks’ lending decisions: Evidence from Chinese commercial banks. China journal of accounting research, 10(1), 33-50.

Chychyla, Roman, Leone, Andrew J, & Minutti-Meza, Miguel. (2019). Complexity of financial reporting standards and accounting expertise. Journal of Accounting and Economics, 67(1), 226-253.

Danyali, Arezo Ahmadi. (2018). Factors influencing customers’ change of behaviors from online banking to mobile banking in Tejarat Bank, Iran. Journal of Organizational Change Management, 31(6), 1226-1233.

Georgescu, Iuliana, Păvăloaia, Leontina, & Robu, Ioan-Bogdan. (2014). Fair value accounting and market reaction: evidence from Romanian listed companies. Procedia-Social and Behavioral Sciences, 143, 827-831.

Haswell, Stephen, & Evans, Elaine. (2018). Enron, fair value accounting, and financial crises: a concise history. Accounting, Auditing & Accountability Journal, 31(1), 25-50.

Malali, Anil B, & Gopalakrishnan, S. (2020). Application of Artificial Intelligence and Its Powered Technologies in the Indian Banking and Financial Industry: An Overview. IOSR Journal Of Humanities And Social Science, 25(4), 55-60.

Mirjalili, Seyed Hossein. (2009). Musharakah Sukuk in the Islamic Republic of Iran Series of Essays on Islamic Capital Market: Teheran: Securities and Exchange Organization of Iran.

Musa, Gani Ibrahim, Bahari, Zakaria, & Aziz, Azreen Hamiza Abdul. (2020). The Impact of Islamic Capital Market on Malaysian Real Economy. Jurnal Ekonomi Malaysia, 54, 2.

Paminto, Ardi, Ulfah, Yana, Ikbal, Muhammad, Irwansyah, Irwansyah, & Darma, Dio Caisar. (2020). Structure of Corporate Governance Important to Reduce Manipulation of Financial Statement: The Empirical Studies in the Indonesia Context. International Journal of Advanced Science and Technology, 29(4), 5001-5013.

Roychowdhury, Sugata, Shroff, Nemit, & Verdi, Rodrigo S. (2019). The effects of financial reporting and disclosure on corporate investment: A review. Journal of Accounting and Economics, 68(2-3), 101246.

Shekhar, KC, & Lekshmy, Shekhar. (2005). Banking theory and practice: Vikas Publishing House.

Song, Guoxiang. (2014). The Role of Fair Value Accounting in the Global Financial Crisis: Evidence from US Global Systemically Important Banks. Available at SSRN 2279532.

Wee, Jung Bum, Ryu, Keunkwan, & Binh, Ki Beom. (2018). Call Timing of Callable Non-Convertible Bonds: A Survival Analysis. Journal of Reviews on Global Economics, 7, 324-336.

Win, Sandar. (2018). Banks’ lending behaviour under repressed financial regulatory environment. Pacific accounting review, 30(1), 20-34.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

World of Researches Publication