Open AccessThe Impact of Loans to Deposit Ratio (LTD) and Return on Assets (ROA) on the Capital Adequacy Ratio of the Tehran Stock Exchange and OTC
Author(s) -
Sorosh Pourjafar Devin,
Omid Farman Ara,
Mahbobe Jafari
Publication year - 2020
Publication title -
journal of management and accounting studies
Language(s) - English
Resource type - Journals
ISSN - 2693-8448
DOI - 10.24200/jmas.vol8iss1pp51-56
Subject(s) - capital adequacy ratio , return on assets , stock exchange , business , return on capital employed , return on capital , capital (architecture) , capital requirement , financial system , economics , actuarial science , financial capital , finance , profit (economics) , capital formation , microeconomics , archaeology , history
Objective: Capital is one of important and essential factors in evaluating healthy and sustainability in banking system and in order that adequate capital basis can address wide range of risking which every bank faces. Methodology: A brief review of banking theory implies empirically that all different aspects of banking organization were influenced by available capital and expected possible return directly or indirectly. Capital operates as a shield against decreasing of asset value or increasing bank debts. The relation between capital adequacy and banking and also economic factors has a considerable importance. A plenty of universities and financial institution have tried to identify the main factor of determining capital adequate ratio.in this term, in recent studies these questions have been issued to determine as is there any positive and meaning relation between fund ratio to depositing on legitimate banking capital adequacy in Tehran commercial paper and Iranian over the counter (OTC)? And also any positive or meaning relation between banking asset return on capital adequacy ratio in commercial paper exchange market? Therefore in terms of finding a solution for issued matter, some assumptions were implied based on determined relations. Results: Considering static population was included all acceptable bank in exchange market in during of 1388 to 1392 and any sampling haven’t been determined. So 15 acceptable bank were selected as a sample in this article.it is better to mention a cross multi – factors model was designed to be examined codified assumption by using synthetic data. And achievable results shows there aren’t any positive or meaning relation between paid fund on depositing and acceptable banking capital adequacy in Tehran exchange commercial paper and OTC. Conclusion: And the observable result also showed that there are positive and direct relation between asset return and acceptable banks capital adequacy in exchange commercial paper market and OTC.