Designing a financial stability model in order to respond to Islamic banking returns to shocks in the value of the national currency
Subject Areas : Financial Knowledge of Securities Analysis
hadi radfar
1
(PhD student of Islamic Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran)
Mohammad Khazri
2
(Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran (corresponding author))
fatemeh zandi
3
(Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran)
bijan safavi
4
(Department of Economics, South Tehran Branch, Islamic Azad University, Tehran, Iran)
Keywords: financial stability, value of national currency, return, structural vector autoregression,
Abstract :
The present study deals with redesigning the design of the financial stability model in order to respond to the return of Islamic banking to the shock of the value of the national currency for the years 1400-1373. For this purpose, using the structural vector autoregression model (SVAR), which are known as impulse models; The response of Islamic banking returns to the shocks of national currency value, financial stability, inflation and inflation were investigated. According to the results, the response coefficient of the yield impulses of cooperative banking contracts to oil revenues, weakening of the value of the national currency and inflation is negative and equal to 0.01, 0.25 and 0.06. Also, the response of financial development momentum coefficient to the yield of cooperative banking contracts is positive and equal to 0.32. The increase in oil and foreign exchange revenues of the central bank causes an increase in the monetary base of the country, and the volume of liquidity also increases, and therefore inflation will also increase. The expectation of inflation in the future period and uncertainty about the inflation rate are also effective in fueling the intensity of inflation, and as uncertainty increases, the amount of investment in the production sector decreases and the production situation and the yield of contracts also worsen. On the other hand, the artificial pricing of the exchange rate in the years before thein order to reduce the pressure of the foreign exchange market, it is suggested that the annual off