The Study of Effective Factors on Iranian Banking System Technical Performance by Applying Panel Data Approach

Authors

1 Ph.D. Student in Economics, Faculty of Economic University of Allameh Tabatabai

2 Professor in Economics, Faculty of Economic University of Allameh Tabatabai

3 Professor in Economics, Department of Economics, University of Qom

Abstract

Calculating rate of efficiency and Determing effective factors in the‌ ‌bank’s competitive environment, because of numerous definitions of inputs and outputs is complex. therefore, due to the different orientations, Intermediate approach via income-based attitude in adapting to the interest-free banking operations have been selected. after that, by using data envelopment analysis method, the efficiency of sixteen public and private banks in variable return state and with the input Oriented assumption have been computed. Then by applying a random effect of panel data model this research investigates the internal and external determinants of banks efficiency. Accordingly to the results, the average efficiency of country’s banks during the Investigation Period is up to 83 percent. based on results of fix effects model , credit risk factor, the share of banks based on the from the per capita deposits(branch)in deposit market, has a negative effect on the efficiency ,and  there is a significant and positive relationship between the numbers of ATMs, consumer price Index and dummy variables represent the private and specialized banks.

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