Presentation of a model for measuring the financial health in banking of

اقتصاد پولی مالی

Article 5, Volume 26, Issue 18, December 2019, Pages 121-154   

Document Type: پژوهشی

DOI: 10.22067/pm.v26i17.74511

Authors

masoumeh mohammadi¹; Esfandiyar malekiian^{* 2}

¹PHD student of accounting university of Mazandaran, Iran

²university of Mazandaran Iran

Abstract

Abstract:
Banking system is one of the most important economical sectors in a country that has the most connection with Macroeconomic sector and therefore any fluctuation and instability in it could affect the Macro economy of the country. Thus, studying the country’s banking industry performance and analyzing the Banking security is crucial. With respect to the performance of banking system at macro economy sectors of the country, any instability and crisis in it could cause fluctuation and disturbance in macro-economic variables, especially production sector. Therefore, emphasis on its financial mediating role, study and assurance of the banking system’s stability and security is of importance.
In this research, first the most important financial relevance to CAMELS index, which according to the study of internal and external researches in the context of researches about financial security of banks and the usage from the experts point of view, have been collected and following that the effective factors on corporate governance index (as an effective factor on CAMELS index and banking security) were identified using the view of experts, which this has never been considered in any of the past researches. Finally, using fuzzy hierarchical analysis, total effective factors on CAMELS and corporate governance indices were ranked simultaneously.
The results showed that five superior factors in banking security include choosing senior management by recruitment processes and considering the qualification required for senior management post, the existence of audit committee at bank, capital adequacy ratio, determining the strategy and policy of financial security of bank and organizational structure by board of directors, and non-current assets/assets ratio.

Keywords

CAMELS index; Corporate governance index; Financial health; Banking of Iran

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