Surveying the effect of market share on profitability and stability of the banks (case study of the banks of Iran country)

As financial and service institutions, banks have a determining role in money circulation and the wealth of the society and therefore have a special place in the economy of each country. Profitability and stability of the banks affected by internal factors that are controlled by the bank management and the balance sheet items express and clarify it. Surveying the profitability and stability of the banks express their performance as a comprehensive case. This study sought to determine the effect of the market share on the profitability and stability of Iran’s banks (stock and non-stock). For this purpose, econometric panel data model is used to survey the effect of the market share on the profitability and stability of the banks. The statistic society of the research includes 18 bank of the country that 10 are stock banks and 8 are non-stock banks in the period of 1388-1392. To conduct this study, 2 main hypotheses and 10 secondary hypotheses are formed that 5 secondary hypotheses survey the profitability and other 5 secondary hypotheses survey the stability. Results show that the market share on profitability and stability of the banks have significant effect

Keywords:

market share , bank’s stability , bank’s profitability , financial stability