Examining the factors affecting banking transparency in Iran; Panel data approach

Document Type : Original Article

Author

دبیر کمیسیون اقتصادی دولت

Abstract

The different nature of banks compared to other economic enterprises in terms of money creation power doubles the importance of transparency in banks. In this research, the index of the adherence of the members of the banking network to the transparency components of the Ball Committee was designed and calculated based on the research of Barth, Kapiro and Levin (2013), and the results showed that the country's banking network has not been able to fully adhere to the transparency components. In order to identify the factors affecting the transparency of banks, this research examines the relationship between transparency and factors related to bank ownership, financial intermediation of banks, risk taking of banks and banks' market. The results of this research, using the random effect panel regression method, show that in the financial intermediation sector, more profitable banks have acted more transparently and regularly in the depth and timing of information release. This greater transparency in banks with higher profitability can be attributed to the collective pressure of shareholders who are attracted to the market due to the bank's profits. In the factors related to banks' risk-taking, balanced assets, capital adequacy ratio and having more government bonds lead to an increase in the transparency of the members of the country's banking network. In the same way, the increase in investment in stocks leads to an increase in risk-taking and a decrease in the transparency of banks.

Keywords


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