Merge and improve risk management indicators

Articles in Press

Document Type : Original Article

Authors

1 Department of Accounting, College of Humanities , Khomein Branch, Islamic Azad University,Khomein,Iran

2 Assistant Professor, Department of Accounting, Lorestan University, Khoramabad, Iran

3 Assisstant prof in the department of banking, Monetary and Banking Research Institute, Tehran, Iran

4 .Assistant Professor, Department of Economic Arak Branch Islamic Azad University Arak.Iran

10.22034/iaas.2022.320709.1217

Abstract

Bank merger is one of the ways to develop, expand the sphere of influence and create the ability to carry out large operations in the international arena. ARDL model has been used to estimate the effect of bank mergers on each of the risks. Risks were measured separately and finally the total risk management was estimated. To measure credit risk, two methods of univariate and one combined variable have been used. The results of the model indicate a positive relationship between return on assets, the ratio of income-generating assets to credit risk and a negative relationship between economic growth and credit risk. To measure liquidity risk, the liquidity ratio and NSFR approach were used. It has liquidity. We have also estimated operational risk based on the BIA approach and measured market risk using the net open position in foreign currency to capital. The results showed that increasing the size of the bank increases operational risk and market risk, and as economic growth improves, banks are more inclined to enter market activities and perform activities with high risk and return, which can lead to increased operational risk. Integration data has a negative effect on improving risk management.

Keywords

Accounting and Auditing Studies

Articles in Press, Accepted Manuscript
Available Online from 23 October 2022

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