Document Type : Research Paper
Authors
1 finance and banking, management & accounting, allame tabataba'i university
2 Assistant Professor, Economics, ATU University, Tehran,
3 M,Sc, Faculty of management and Accounting, Allameh Tabataba’i University, Tehran, Iran
Abstract
Banks play a crucial role in maintaining the financial stability within an economy. Their importance stems from the various functions and roles they perform contributing to the overall stability and growth of the financial system. On the other hand, the importance of banks for real economic growth lies in their role as financial intermediaries that facilitate the efficient allocating of capital, supporting businesses and individuals, and contributing to the overall stability and development of the economy. This research has investigated the factors affecting banks' risk-taking with emphasis on monetary policy, regulatory, and macroeconomic variables in 16 banks in Iran during the years 2011 to 2023. In this study, two models are used and the estimation method is GMM. The results of the research show that there is an inverse relationship between monetary policy and risk-taking. While capital adequacy ratio (regulatory) and GDP growth rate have a positive effect on risk-taking, the relationship between inflation rate and risk-taking is inverse.
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