new economy and trad

new economy and trad

Analysis of Resource Allocation Efficiency in Iranian Banks: A Quantile Regression Approach

Document Type : Research Paper

Authors
Vahid Shabani 1
Kambiz Hojabr Kiani 2
Seyed Shamseddin Hosseini 3
Marjan Damankeshideh 4
1 PhD Candidate in Economics, Faculty of Management and Economics, Sciences and Research Branch, Islamic Azad University, Tehran, Iran
2 Professor of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran.
3 Associate Professor of Economics, Faculty of Economics, Allameh Tabataba'i University, Tehran, Iran.
4 Associate Professor, Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
10.30465/jnet.2026.53746.2265
Abstract
The banking system, as the main pillar of financial circulation, plays a vital role in optimal resource allocation, with its efficiency directly impacting economic growth and financial stability. This study employs a quantile regression approach using data from 20 banks listed on the Tehran Stock Exchange over the period 2011-2023 to analyze the relationship between resource allocation and bank profitability. Diagnostic test results confirm stationarity of variables and presence of heteroscedasticity, justifying the use of quantile regression. Findings reveal that the effect of the loan-to-deposit ratio on return on assets is positive and significant for low-profit banks, while statistically insignificant for high-profit banks. The slope equality test confirms a marginally significant difference in this variable. The asset efficiency ratio was identified as the most important determinant of profitability across all quantiles, and non-performing loans exhibited a stronger negative impact on low-profit banks, consistent with Stiglitz and Weiss's credit rationing theory (1981). Liquidity growth showed a positive and significant effect only in high-profit banks. Robustness checks confirm the stability of the results. These findings underscore the necessity of designing differentiated policies to improve resource allocation efficiency in banks with varying profitability levels.
Keywords
Resource Allocation
Bank Profitability
Quantile Regression
Loan-to-Deposit Ratio
Non-Performing Loans
احتشام راثی، رضا؛ سلطانی، علی؛ عابدی، صدیقه. (۱۴۰۲). ارائه مدل ریاضی چندهدفه برای بهینه‌سازی تجهیز و تخصیص منابع مالی سیستم بانکی. مدیریت صنعتی، ۱۵(۲)، ۲۷۲-۲۹۸.
شعبانی، وحید؛ هژبرکیانی، کامبیز؛ حسینی، سید شمس‌الدین و دامن‌کشیده، مرجان. (۱۴۰۲). الگوسازی توزیع شرطی سودآوری بانک‌ها؛ شواهدی از ایران. اقتصاد و الگوسازی، ۱۴(۲)، ۱۶۱-۲۰۳. https://doi.org/10.48308/jem.2024.233129.1863
شعبانی، وحید؛ هژبرکیانی، کامبیز؛ حسینی، سید شمس‌الدین و دامن‌کشیده، مرجان. (۱۴۰۴a). اثر سلامت بانکی بر سودآوری شرطی بانک‌ها؛ شواهدی از ایران. فصلنامه علمی پژوهشی اقتصاد مقداری، انتشار آنلاین. https://doi.org/10.22055/jqe.2025.47417.2647
شعبانی، وحید؛ هژبرکیانی، کامبیز؛ حسینی، سید شمس‌الدین و دامن‌کشیده، مرجان. (۱۴۰۴b). واکاوی معمای هزینه-درآمد در بانک‌های ایرانی: رهیافت رگرسیون کوانتایل. اقتصاد و تجارت نوین، ۲۰(۶۸)، ۳۵-۶۸. https://doi.org/10.30465/jnet.2026.53381.2251
شعبانی، وحید؛ هژبرکیانی، کامبیز؛ حسینی، سید شمس‌الدین و دامن‌کشیده، مرجان. (۱۴۰۴c). شکاف سودآوری در نظام بانکی ایران: تحلیل دوگانگی بانک‌های بزرگ و کوچک با رهیافت رگرسیون کوانتایل. فصلنامه مطالعات اقتصادی کاربردی ایران, (), -. https://doi.org/10.22084/aes.2025.31910.3856
شفیعی، مهدی؛ محمدزاده سالطه، حسین؛ جهانگیرنیا، حمید. (۱۴۰۳). تخصیص بهینه منابع بانکی با رویکرد بیشینه کردن سود و کاهش ریسک اعتباری در سیستم بانکداری ایران. اقتصاد و بانکداری اسلامی، ۱۳(۴۹)، ۲۲۷-۲۵۶.
کاشیان، عبدالمحمد. (۱۴۰۳). ارزیابی تأثیر استراتژی‌های تخصیص منابع بر عملکرد نظام بانکی ایران: رویکردی مبتنی بر بانکداری اسلامی. Iranian Journal of Economic Studies (IJES)، (۱)13، ۱۵۹-۱۷۸ https://doi.org/10.22099/ijes.2025.52865.2028
Albertazzi, U., & Gambacorta, L. (2009). Bank profitability and the business cycle. Journal of Financial Stability, 5(4), 393-409. https://doi.org/10.1016/j.jfs.2008.10.002
Altunbas, Y., Manganelli, S., & Marques-Ibanez, D. (2018). Realized bank risk during the great recession. Journal of Financial Intermediation, 36, 1-16. https://doi.org/10.1016/j.jfi.2018.02.001
Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Springer.
Berger, A. N., & Bouwman, C. H. (2013). How does capital affect bank performance during financial crises? Journal of Financial Economics, 109(1), 146-176. https://doi.org/10.1016/j.jfineco.2013.02.008
Berger, A. N., & DeYoung, R. (1999). Problem loans and cost efficiency in commercial banks. Journal of Banking & Finance, 21(6), 849-870. https://doi.org/10.1016/S0378-4266(99)00008-8
Berger, A. N., & DeYoung, R. (1999). Problem loans and cost efficiency in commercial banks. Journal of Banking & Finance, 21(6), 849-870. https://doi.org/10.1016/S0378-4266(99)00008-8
Berger, A. N., & Humphrey, D. B. (1997). Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research, 98(2), 175-212. https://doi.org/10.1016/S0377-2217(96)00342-6
Berger, A. N., & Humphrey, D. B. (1997). Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research, 98(2), 175-212. https://doi.org/10.1016/S0377-2217(96)00342-6
Berger, A. N., Molyneux, P., & Wilson, J. O. (2020). Banks and the digital revolution: Review and trends. Journal of Banking & Finance, 121, 105960. https://doi.org/10.1016/j.jbankfin.2020.105960
Berger, A. N., Molyneux, P., & Wilson, J. O. (2020). Banks and the digital revolution: Review and trends. Journal of Banking & Finance, 121, 105960. https://doi.org/10.1016/j.jbankfin.2020.105960
Borio, C., Gambacorta, L., & Hofmann, B. (2017). The influence of monetary policy on bank profitability. International Finance, 20(1), 48-63. https://doi.org/10.1111/infi.12104
Borio, C., Gambacorta, L., & Hofmann, B. (2017). The influence of monetary policy on bank profitability. International Finance, 20(1), 48-63. https://doi.org/10.1111/infi.12104
Bortoluzzo, A. B., Ciganda, R. R., & Bortoluzzo, M. M. (2024). Determinant factors of banking profitability: an application of quantile regression for panel data. Future Business Journal, 10(1), 1-15. https://doi.org/10.1186/s43093-024-00347-z
Demirgüç-Kunt, A., & Huizinga, H. (2010). Bank activity and funding strategies: The impact on risk and returns. Journal of Financial Economics, 98(3), 626-650. https://doi.org/10.1016/j.jfineco.2010.06.004
DeYoung, R., et al. (2020). Risk management and financial stability in emerging markets. Journal of Financial Stability, 46, 100722. https://doi.org/10.1016/j.jfs.2020.100722
DeYoung, R., et al. (2020). Risk management and financial stability in emerging markets. Journal of Financial Stability, 46, 100722. https://doi.org/10.1016/j.jfs.2020.100722
Eisenbach, T. M., Lucca, D. O., & Townsend, R. M. (2022). Resource Allocation in Bank Supervision: Trade‐Offs and Outcomes. Journal of Finance, 77(3), 1685-1736. https://doi.org/10.1111/jofi.13127
Eisenbach, T. M., Lucca, D. O., & Townsend, R. M. (2022). Resource Allocation in Bank Supervision: Trade‐Offs and Outcomes. Journal of Finance, 77(3), 1685-1736. https://doi.org/10.1111/jofi.13127
Elekdag, S., Malik, S. H., & Mitra, S. (2020). Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability. Journal of Banking & Finance, 120, 105949. https://doi.org/10.1016/j.jbankfin.2020.105949
Elekdag, S., Malik, S.H., & Mitra. S. (2020). Breaking the Bank? A Probabilistic Assessment of Euro Area Bank Profitability. Journal of Banking & Finance, 120, 1-16. https://doi.org/10.1016/j.jbankfin.2020.105949
Jarque, C. M., & Bera, A. K. (1987). A test for normality of observations and regression residuals. International Statistical Review, 55(2), 163-172. https://doi.org/10.2307/1403192
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Khan, M. R. I., & Haque, R. (2025). Technical, allocative and cost efficiency of private commercial banks in Bangladesh. Asian Journal of Economics and Banking. https://doi.org/10.1108/AJEB-10-2024-0117
Koenker, R. (2004). Quantile regression for longitudinal data. Journal of Multivariate Analysis, 91(1), 74-89. https://doi.org/10.1016/j.jmva.2004.05.006
Koenker, R. (2005). Quantile Regression. Cambridge University Press. https://doi.org/10.1017/CBO9780511754098
Koenker, R. (2005). Quantile Regression. Cambridge University Press.
Koenker, R., & Bassett, G. (1978). Regression quantiles. Econometrica, 46(1), 33-50. https://doi.org/10.2307/1913643
Koenker, R., & Bassett, G. (1978). Regression quantiles. Econometrica, 46(1), 33-50. https://doi.org/10.2307/1913643
Koenker, R., & Bassett, G. (1982). Robust tests for heteroscedasticity based on regression quantiles. Econometrica, 50(1), 43-61. https://doi.org/10.2307/1912528
Koenker, R., & Hallock, K. F. (2001). Quantile regression. Journal of Economic Perspectives, 15(4), 143-156. https://doi.org/10.1257/jep.15.4.143
Kweh, Q. L., Lu, W. M., Tone, K., & Liu, H. M. (2024). Evaluating the resource management and profitability efficiencies of US commercial banks from a dynamic network perspective. Financial Innovation, 10(1), 1-20. https://doi.org/10.1186/s40854-023-00531-0
Kweh, Q. L., Lu, W. M., Tone, K., & Liu, H. M. (2024). Evaluating the resource management and profitability efficiencies of US commercial banks from a dynamic network perspective. Financial Innovation, 10(1), 1-20. https://doi.org/10.1186/s40854-023-00531-0
Levine, R. (2005). Finance and growth: Theory and evidence. In P. Aghion & S. Durlauf (Eds.), Handbook of Economic Growth (Vol. 1, pp. 865-934). Elsevier. https://doi.org/10.1016/S1574-0684(05)01012-9
Levine, R., Lin, C., & Xie, W. (2020). The African slave trade and modern household finance. The Economic Journal, 130(628), 1077-1101. https://doi.org/10.1093/ej/ueaa004
Levine, R., Lin, C., & Xie, W. (2020). The African slave trade and modern household finance. The Economic Journal, 130(628), 1077-1101. https://doi.org/10.1093/ej/ueaa004
Marshall, A. (1890). Principles of Economics (1st ed.). Macmillan and Co.
Marshall, A. (1890). Principles of Economics (1st ed.). Macmillan and Co.
Miao, S. (2025). The impact of banking competition on firm innovation efficiency: Micro-level evidence based on financial geographical structure. International Review of Economics & Finance, 103, 104504. https://doi.org/10.1016/j.iref.2025.104504
Miao, S. (2025). The impact of banking competition on firm innovation efficiency: Micro-level evidence based on financial geographical structure. International Review of Economics & Finance, 103, 104504. https://doi.org/10.1016/j.iref.2025.104504
Petria, N., Capraru, B., & Ihnatov, I. (2015). Determinants of banks' profitability: Evidence from EU 27 banking systems. Procedia Economics and Finance, 20, 518-524. https://doi.org/10.1016/S2212-5671(15)00104-5
Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393-410.
Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393-410.
Tabak, B. M., Miranda, R. B., & Fazio, D. M. (2013). A geographically weighted approach to measuring efficiency in panel data: The case of US saving banks. Journal of Banking & Finance, 37(10), 3747-3756. https://doi.org/10.1016/j.jbankfin.2013.02.013
Zhang, Z., Gang, Z., & Su, F. (2025). Geographic diversification and bank efficiency: Evidence from China's commercial banks. International Review of Economics & Finance, 104, 104706. https://doi.org/10.1016/j.iref.2025.104706
Zhang, Z., Gang, Z., & Su, F. (2025). Geographic diversification and bank efficiency: Evidence from China's commercial banks. International Review of Economics & Finance, 104, 104706. https://doi.org/10.1016/j.iref.2025.104706

  • Receive Date 13 December 2025
  • Revise Date 16 February 2026
  • Accept Date 17 March 2026