Investigating the Factors Affecting the Productivity of Islamic Banking (Case Study of Tose’e Ta’avon Bank and its selected Branches)

Document Type : Research Paper

Authors

1 PhD student, Department of Economics, Abhar Branch, Islamic Azad University, Abhar, Iran

2 Professor of Economics Department,, Research Sciences Unit, Shahid Beheshti University and Islamic Azad University, Tehran, Iran

3 Assistant professor of department of economics, abhar barnch, islamic azad university, abhar, iran.

Abstract

In order to evaluate the productivity of banks, it is necessary to measure the efficiency of banks. Therefore, in this research, productivity and factors affecting it were investigated in the Tose’e Ta’avon Bank and its selected branches.
Methodology. The marginal cost function approach was used to measure productivity. Also, to investigate the factors affecting productivity in the bank, the autodistribution method with extended intervals (ARDL) and the generalized moments method (GMM) were used in selected branches during the monthly period of 2011-2018.
Findings and Conclusion. Productivity in Tose’e Ta’avon Bank fluctuates a lot. The long-term coefficient estimated for the variable of personnel cost and doubtful receivables is negative and significant, and current facilities, internet bank, mobile bank and POS transaction are also positive and significant. Productivity in branches is different in different years. The effect of the two variables of current facilities and doubtful receivables is meaningless, and the effect of the variables of negative personnel costs and ATM and POS transactions is positive and significant.
Originality. Previous studies have focused on examining productivity in banking; However, few studies have investigated the productivity of the Tose’e Ta’avon Bank and its selected branches.
Limitations: The results of this research are limited to the Tose’e Ta’avon Bank and can be interpreted with caution in the context of other private and public banks.
Practical impilications: The results can help bank managers to find solutions to improve productivity, reduce costs and increase bank profits, and analyze various processes and apply the necessary improvements.

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History

  • Receive Date: 27 January 2024
  • Revise Date: 03 December 2024
  • Accept Date: 05 December 2024

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