مطالعات مالی و بانکداری اسلامی (Nov 2017)
Investigating the Factors Affecting Banks' Reliance on Central Bank Resources Using the GMM Method
Abstract
The central role of the central bank as the regulator of the monetary and credit system of the country plays the role of a lender of last resort in order to support banks to avoid deficit of liquidity and financial crises. The purpose of this study is to examine the internal factors affecting banks' reliance on central bank resources. In order to calculate the banks' reliance on central bank resources, the ratio of debt to central bank to claims from the central bank has been used. The results from the estimation of the GMM dynamic panel model for 27 banks in Iran during the years 1385-1394 indicate that banks' capital and liquidity have a negative and significant effect and the ratio of facilities to deposits has a positive and significant effect on banks' reliance on central bank resources.
