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The Impact of Interest Rate Risk Management on Persistence and Valuation of Net Interest Income in Listed Banks on Tehran Stock Exchange
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Farshid Tozihi1   , Gholamreza Mahfoozi *1 , Seyed Mohammad Moshashaei1 |
| 1- Guilan University |
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Abstract: (223 Views) |
This research examines the interest rate risk management, one of the most important risks in banks listed on to the Tehran Stock Exchange and the impacts that may have on the persistence and valuation of net interest income; Because most of the profitability of banks comes from this income. In the meantime, by presenting new criteria instead of the gap criterion (GAP), an effort was made to gain a better understanding of this banking practice in addition to helping banks manage this risk more effectively. The time frame of this research is 2003 - 2021 and the research method is correlation base. To test the hypotheses, unbalanced panel data and GMM and OLS regression have been used. The results of the research show the existence of a negative and insignificant relationship between the impact of interest rate risk management and the persistence of net interest income, and with the valuation of this income, an insignificant but positive relationship is seen. The obtained results indicate the existence of an obstacle called the mandatory determination of the interest rate, which prevents the effective management of this risk by the banks and prevents them from achieving stability in net interest income and, consequently, stability in profit and it deprives them of the increase in the valuation of their shares.
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Article number: 4 |
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Full-Text [PDF 1347 kb]
(135 Downloads)
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Type of Study: Empirical Study |
Subject:
Financial Institutions and Services (G2)
Received: 2023/03/11 | Accepted: 2024/04/23 | Published: 2024/07/30
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