Capital Structure and Financing Sources in Melli Bank and Ways to Optimize It

Aziz Gord, Karim Pirsabahi
2014 Nigerian Chapter of Arabian Journal of Business and Management Review  
This research has surveyed capital structure and financial resources of Melli bank then has tried to offer some approaches to optimize these resources. Considering the relationship between bank capital structure and effect of capital structure upon capital cost, examining this problem in bank is very impressive. This research is to determine combination of capital structure of Melli bank. To pursue this goal, we examined capital structure in a ten year period. Some criteria as capital cost and
more » ... egulations on capital are applied for examining the optimum level of capital structure. For calculating the cost of non-operational deposits a questionnaire is designed & distribute among bank branches. Then after analyzing data, the allocation rate of nonoperational costs to deposits was figured out. Finally weighted average of bank capital cost from 2005 to 2013 was handed out. Findings show that in the main hypothesis, Actual capital structure of Melli Bank is not optimal. And the first sub-hypothesis, the cost of financing of Melli Bank is not optimal. Also, the second sub-hypothesis shows that credit risk of Melli Bank is not optimal.
doi:10.12816/0003719 fatcat:klp4fht6tzeljlg44mfzujxl5a