Macroeconomic Drivers of Capital Adequacy in the Iranian Banking Sector

From the perspective of many banking sectors, capital adequacy is one of the most important indicators in assessing banking performance and health. For this purpose, this study examines the effect of the macroeconomic situation on the capital adequacy of the banking network by selecting key variables (economic growth, government budget deficit, inflation, liquidity growth, and exchange rate growth) using the eviews software and the linear regression method. The results of the regression estimation show that, respectively: changes in liquidity, changes in inflation, changes in exchange rates, changes in the government budget deficit, and changes in economic growth have had the highest impact on changes in the capital adequacy of the country's banking network. In general, based on the estimated regression model with the aim of examining the extent and direction of the impact of the growth of macroeconomic variables on the growth of the capital adequacy of the banking network, it is estimated that the growth of the capital adequacy of the country's banking network will decrease by ۱.۷۲ percent in ۱۴۰۴. In this regard, and in order to improve the capital adequacy ratio in banks, suggestions have been made in the form of strategies related to the banking system (government and central bank policies) Among them are determining the optimal level of capital adequacy for banks, reducing and stopping the government's use of banking resources in the form of mandatory facilities that can make bank facilities more available to the non-governmental sector than in the past.

کلیدواژه ها:

Capital Adequacy Ratio ، Government budget deficit ، economic growth ، inflation ، liquidity growth