IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2018-04-25.html
   My bibliography  Save this article

The Effects of Macroeconomic Variables on the Determination of Bank Credit Rate of Usury- Free- Banking in Iran

Author

Listed:
  • Shahrbanou Fallah

    (Islamic Banking, Islamic Azad University, Ajabshir Branch, Ajabshir, Iran,)

  • Ali Shahinpour

    (Doctor of Economics, Islamic Azad University, Ajabshir Branch, Ajabshir, Iran,)

  • Ali Satari

    (Department of Management, NABI AKRAM College, Tabriz, Iran.)

Abstract

The study has used Auto Regressive Distributed Lag method to estimate the effects of independent variables on the dependent variable. According to findings, the impact inflation rate on bank credit rate is positive in short run, so that the impact of this variable has been effective on bank credit rate after one year delay on dependent variable. The reel per capita gross domestic product alters the banking credit rates toward the positive direction. The short run impact of legal reserve rate on bank credit rates is positive. The effects of inflation rate, GDP, and legal reserve rate variables are positive on the bank credit rate. Thus, the Fisher hypothesis is confirmed in Iranian context. Error correction coefficient links the speed of the short-run variable fluctuations to the long-run equilibrium amount i.e. the short-run imbalances of dependent variable decreases 19% annually and moves to the long-run equilibrium.

Suggested Citation

  • Shahrbanou Fallah & Ali Shahinpour & Ali Satari, 2018. "The Effects of Macroeconomic Variables on the Determination of Bank Credit Rate of Usury- Free- Banking in Iran," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 199-205.
    • Handle: RePEc:eco:journ1:2018-04-25
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/6372/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/6372/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dilek Teker & Elçin Aykaç Alp & Oya Kent, 2012. "Long-Run Relation between Interest Rates and Inflation: Evidence from Turkey," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(6), pages 1-4.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sevda Yapraklı, 2022. "The Validity of The Neo-Fisher Effect in The Period of Explicit Inflation Targeting: An Econometric Analysis on Turkey," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(37), pages 85-105, December.
    2. Mustafa Kasim & Bentouir Naima, 2018. "The Relationship Between Inflation Rate and Nominal Interest Rate in Bolivarian Republic Of Venezuela: Revisiting Fisher’s Hypothesis," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 7(4), pages 214-224, November.

    More about this item

    Keywords

    Macroeconomic Variables; Bank Credit Rate; Usury- Free- Banking;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2018-04-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.