Merge And Credit risk

Subject Areas : Financial engineering

zeinab khalil arjomandi ¹ , Masoud Taherinia ² , Azam Ahmadyan ³ , Ahmad Sarlak ⁴

1 - Department of Accounting, Khomein Branch ,Islamic Azad University, Khomein, Iran
2 - Department of Accounting, Lorestan University, Khoramabad, Iran
3 - Department of banking, Monetary and Banking Research Institute, Tehran, Iran,
4 - Department of Economic, Arak Branch, Islamic Azad University, Arak. Iran

Received: 2021-05-07 Accepted : 2021-06-30 Published : 2021-12-22

Keywords: "Merger", " Credit risk, ", "ARDL",

Abstract :

merge Bank is one of the ways to reform the structure of the banking network in the yearsThe latter has come to the attention of Iranian banking policymakers. Merger of banks in Iran with the aim of improving the health and Risk management of banks was done in 2017 one of the most important Risks، In the absence of proper management can cause a crisis in the bank. in this article the effect of bank mergers on credit risk in the years 1996-2018 has been studied. The virtual variable is used to measure the merger of banks.In this article, to create a bank merger variable, a virtual variable is defined, according to which, if the banks is merged, it is considered number one and otherwise it is considered a zero number. To measure credit risk, two methods of univariate and definition of a combined variable have been used. To estimate the effect of bank mergers on credit risk of the model ARDL Used. The results of the model indicate a positive relationship between return on assets, the ratio of income-generating assets to credit risk and a negative relationship between economic growth and credit risk