Banks Income Forecasting Based on Deposits Composition Using Response Surface Methodology

Document Type : Research Paper

Authors

1 Associate Prof., Faculty of Economics and Social Sciences, Bu Ali Sina University, Hamedan, Iran

2 Ph.D. Student in Financial Economics ,Faculty of Economics and Social Sciences, University of Bu Ali Sina, Hamedan, Iran

Abstract

In this study, the impact of independent variables including current deposits, investment deposits, saving deposits, long-term investment deposits, short term investment deposits and other deposits on total bank income based onresponse surface methodology is evaluated. For this purpose, central composite design with 5 independent variables and 1 dependent variable is used. Data analysis was done using Quadratic regression. The statistical population of the study includes data from Eghtesade Novin, Parsian, Pasargad, Post Bank, Tejarat, Export Development Bank, Refah, Saman, Sepah, Sarmayeh, Sina, Karafarin, Bank of Industry and Mine, Melli, Mellat, Maskan and Keshavarzi banks during 2005-2013. The results showed that current deposits, investment deposits, saving deposits, long-term and short-term investment deposits have significantly positive impact on total bank incomes, but the other types of deposits have negative impact on bank income. In addition, the estimation accuracy for response surface methodology, in this research, is 95%.
 

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References

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Financial Research Journal
Volume 19, Issue 4
2017
Pages 579-594

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