Journal of Industrial and Systems Engineering

Journal of Industrial and Systems Engineering

Modeling the Impact of Banking Competition on Stability (Case Study: Banks of the Islamic Republic of Iran)

Document Type : Research Paper

Authors
Hatam Sanjari pyraivatloo
Arash hadizadeh
Roozbeh Balounejad Nouri
Beitollah Akbari Moghaddam
Department of Economics, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Abstract
The stability of the banking system, as the core of the monetary-financial sector and due to the heavy reliance of other sectors on banking for mobilizing capital resources, requires special attention. Identifying the factors that influence bank stability has become increasingly important. Recent studies have increasingly focused on identifying the elements that affect banking stability, with competition being one of the key factors.
The main objective of this dissertation is to model and examine the impact of banking competition on the stability of banks in the Islamic Republic of Iran. This research is descriptive-correlational in terms of its methodology, and applied in terms of its purpose. Since the study investigates the current status of variables by collecting data from historical information, it falls under the category of descriptive-post-event studies.
The statistical population consists of banks listed on the Tehran Stock Exchange during the years 2016 to 2021 (1395 to 1400 in the Iranian calendar). Finally, considering AdaBoost tree models—which utilize decision trees during the training phase and are highly accurate—we aim to explain the generated rules and hidden data patterns in terms of marketing concepts and target customers. Most of the reported rules are those with higher probabilities of occurrence and lower errors, thus making them more useful.
Keywords
Banking competition
Banking stability
Iranian banks
Subjects
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Journal of Industrial and Systems Engineering
Volume 17, Issue 1 - Serial Number 1
Winter 2025
Pages 154-167

  • Receive Date 25 September 2024
  • Revise Date 22 November 2024
  • Accept Date 27 December 2024