Commenced in January 2007
Paper Count: 32009
The Model to Calculate the Cost of Money to the Breakdown of Deposits and Banking Service
Abstract:The present study aimed to assess the cost of money based on separating deposits and identifying actions and costs affecting in the process of cost of money in EN Bank of Iran (also known as Eghtesad Novin Bank). The method to calculate the cost of money is based on Activity-Based Costing (ABC). To conduct the study, the required data including deposits in banks and absorbed costs related to the same deposits were extracted from the financial statements of the bank. In order to cost the bank services properly as well as determining the commercial strategies required by commercial units, the data are precisely studied and the cost of each deposit is calculated according to the ABC. Eventually, the factors helping to improve the cost management and also a new model to calculate the cost of money in the bank are presented by some applicable formulas. Furthermore, some offers have been provided for users of both sections, in the practical section in commercial units and the theoretical one in universities.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1128803Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 702
 C. Vítor, “Macroeconomic determinants of the credit risk in the banking system: The case of the GIPSI,” Economic Modeling, vol. 31, 2013, pp. 672-683.
 Da S. M. Soares, D. J. Angelo, “The role of banking regulation in an economy under credit risk and liquidity shock,” North American Journal of Economics and Finance, available at SciVerse Science Direct, 2013.
 Ngurah, G. Mandala, N. Nawangpalupi, C. Badra, R. Praktikto, Fransiscus, “Assessing Credit Risk: An Application of Data Mining in a Rural Bank, Procedia Economics and Finance,” vol. 4, 2012, pp. 406–412
 K. M. Baird, G. L. Harrison, and R. C. Reeve, “Adoption of Activity Management Practices: a Note on the Extent of Adoption and the Influence of Organizational and Cultural Factors”. Journal of Management Accounting Research, 2006, pp. 383-399.
 M. Andrews, “Authority, Acceptance, Ability and Performance- Based Budgeting Reforms”. The International Journal of Public Sector Management, Vol. 17, 2004. pp. 332-347.
 W. Chongruksut, “The Adoption of Activity-Based Costing in Thailand”. School of Accounting and Finance, Faculty of Business and Law, Victoria University (2004).
 Hilton, Maher & Selt “Cost Management “Mc Grawhill, 2000.
 P Turney, “Activity Based Costing “Kongan, 1997.
 Mirzaee, “to investigate the relationship between credit risk with the cost of money in the Agricultural Bank, a case study in Kerman-Iran,” 2014.
 Yarmohammadi “the determination of an optimal combination of resources and its impact on the cost of money in the National Bank of Iran,” 2012.
 K. Amini, T. Hosseini, “the credit risk of customers' repayment of credit facilities (the scope of the Branch of National Bank of Iran),” the Ninth International Conference on Industrial Engineering, 2012.
 H. Hashemi, the development of industry, 2011, accessible: http://www.nassajiemrouz.com
 H. Nasser and M. N. Shadi “Evaluating the impact of macroeconomic variables on the credit risk of banks,” economic research review winter 2009, - (6 (particularly letter bank)), pp. 33-59.
 Mazar and Yazdi, “the feasibility study model designed to calculate the cost of bank deposits as ABC: The Case of the Refah Bank of Iran,” 2003.
 Sarmad, “Research Methods in the Behavioral Sciences,” Agah Publishing, Tehran, Second Edition, 1999.