The Effect of Monetary Policies on Stocks Price Index of Banks;VAR-BEKK Model

Document Type : Original Article


1 Master of Accounting, Central Tehran branch, Islamic Azad University, Tehran, Iran

2 Department of Accounting, Associate Professor, Central Tehran Branch, Islamic Azad University, Tehran, Iran, (Correspond Author)


The monetary policy in the frame of monetary transaction through stocks market affects the stocks’ price that these prices also affect the economy with impacting consuming and investing expenses. In another word, based on the importance of monetary part in commercial banks, the effect of these policies on bank stocks has a great importance that is studied in his project. For this purpose, the data of instrument related to monetary policy and bank stocks index are evaluated monthly from 2006 to 2015 through VAR-BEKK method.
These results have presented the obvious effects from money market to capital market among banks and monetary policies of the central bank has a direct effect on stocks index of commercial banks in the way that the liquidity amounts and frequencies respectively have caused the increasing and frequency of stock price


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