1- Imam Hossein University 2- Mazandaran University of Science and Technology
Abstract: (201 Views)
In this study the usefulness of fair value compared with cost of loans for predicting non-performing loans is tested. Also, in line with stabilization and completion of research findings, expected credit loss compared with loss impairment and reserve of loss impairment of loans for predicting banks, future operational profitability is tested. The hypotheses of the study were tested by static and dynamic panel through the panel data gathered from 14 listed banks in Tehran Stock Exchange during 2014- 2021. The findings of the first hypothesis of the research indicated that only the fair value of loans has ability to predict non-performing loans of banks. The findings of the second hypothesis of the research indicated that the expected credit loss compared with retained loss impairment of loans, has more ability to predict one year-future operational profitability of banks. The findings of the third hypothesis of the research indicated that only expected credit loss has ability to predict two year-future operational profitability of banks.
