The effect of Longevity and Learning on unit cost in Iran`s Banking Industry (2001-2021)

Subject Areas : Financial Economics

MohammadReza Hajian ^{1 *} , Jamshid Pajouyan ² , فرهاد غفاری ³ , فرهاد خداداد کاشی ⁴

1 - 1. PhD student of Economics, Department of economics, Science and research branch, Islamic Azad university of Iran, Tehran, Iran
2 - Professor of Economics, Department of economics , Science and research branch, Islamic Azad university of Iran, Tehran, Iran
3 - گروه اقتصاد، ، دانشگاه آزاد اسلامی ، واحد علوم و تحقیقات تهران، ایران،
4 - عضو هیأت علمی دانشگاه پیام نور

Received: 2023-05-27 Accepted : 2024-10-28 Published : 2025-01-05

Keywords: Bank , Learning Curve, Longevity, Average Cost,

Abstract :

This research examines the effect of experience and learning and the longevity of the bank since its establishment on the average cost in the banking industry of Iran, which includes 10 state banks and 17 private banks, between 1380-1400. In this research, in order to measure learning, the cumulative production index, which is the amount of loans and facilities in banks, has been used. The longevity of the bank since its establishment is considered as a side effect of experience. The results show that the slope of the learning curve is negative as expected and the intensity of learning in this industry is low. The age has a positive effect on the average cost and it indicates that the increase in the lifespan of the bank has caused an increase in the cost of the banks. Considering the positive effect of the bank's lifespan on its costs, this study shows the necessity of optimal use of human and capital resources as institutions of this industry in order to improve productivity and increase conscious learning through the learning by doing.