Document Type : Research Article

Authors

• Mohammad Hosin Gavam ¹
• Mohammad Zarei ²

¹ Assistant Professor, Faculty Member, Department of Financial Management, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran

² PhD Student in Finance, Financial Engineering major, Department of Financial Management, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran

Abstract

This research aims to investigate the relationship between the efficiency of development banks and the country’s financial and real markets. Export Development Bank of Iran, as the only Islamic bank specializing in the export sector and possessing a developmental role, has been selected as the case study. Improving the performance and increasing the efficiency of this bank can contribute to establishing stability in the national economy and advancing the strengthening of the real sector, which can play an effective role in achieving the goals outlined in the policies of the Resistance Economy.To achieve the research objective, three selected indicators; return on assets (ROA), return on capital employed (ROCE) and the total revenue vs. total cost ratio (TRTC) have been used as a criterion for assessing the performance and financial efficiency of the Export Development Bank of Iran Iran over the period from 1993 to 2014 (1372 to 1393 in the Iranian calendar). Effect of macroeconomic indicators such as liquidity, interest rate on bank deposits, total stock index, etc. On the efficiency indicators mentioned using the econometric method of the system of simultaneous equations in Eviews software version 9 Analysis has been made. The findings of this study indicate that there is a direct and significant relationship between ROA as one of the indicators of financial efficiency of the Export Development Bank of Iran and the major variables of financial and real markets of the country. One of the important aspects for the implementation of Resistance Economics Policies is to increase the efficiency and strengthen the structure and stability of financial markets, in the meantime, specialized development banks due to state support and their role In the real economy and in the livelihoods of people, they have a two-fold significance; hence, these banks must increase their economic strength by increasing their efficiency to reinforcement their internal structure and increasing targeted facilitation

Keywords

• Efficiency
• Development Banks
• Financial and Real Markets
• Export Development Bank of Iran
• Resistance Economy

Main Subjects

• Islamic Financial Institutions