EVALUATING THE IMPACT OF INFLATION ON PROFITABILITY OF BANKS

Abstract

The main purpose of this study is evaluating the impact of Inflation on profitability of banks. The population was the state and private banks in Iran that Information and financial statements was available on their sites. State banks are Tejarat, Mellat and Saderat Banks and private banks are Parsiyan, Pasargadae, Ektesad nowin, Saman, Sina, Tat, Qvamin, Karafarin, Toseeh ans Askariyeh financial institutions. Due to the limited number of banks will be census sampling method. The period of study is between fiscal years 2010 till 2013. In order to analyze the data resulted from collected questionnaires deductive and descriptive statistical methods are used, and
to display some statistical data we used column diagram and in deductive level to test the hypothesis of the research and Generalized method of moments is used to estimate the model. The overall reliability of the model is used j-statistic and to test whether all the non-zero coefficients Waled Test is used. The analysis has performed with Eviews. Findings show that the P-value of ROA and Inflation has letter than the .05 so, we can say that the variables have Manayy and Inflation, Nim, Bsize, Liquidity, Taxation, Capitalization, Cost efficiency; Non traction; Concent and BSD have impact on profitability of banks.