The Factors Affecting the Credit Risk in the Iranian Banks: The Case Study of Mellat Banks.

Author(s)

Dr. Mohammad Hassan Haddadi ,

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Volume 5 - October 2016 (10)

Abstract

This study aimed to identify the factors affecting credit risk of Iranian banks, with special reference to customers of Mellat bank at Gholston province of Iran. By applying "DEMATEL" technique, we could select only 186 document out of 235 for the period five years from, 2011 to 2015. For this purpose, first, Theoretical framework and background related to the issue of research was studied and all of the factors affecting credit risk were identified and the information related to factors affecting the credit risk were collected from bank records of customers who received the credit facility from Mellat Bank of Golestan province at Iran. The results of logistic regression analysis and the results of "DEMATEL" technique showed that among selected variables there is a significant relationship between credit risk of customers and liquidity ratios, Leverage ratios but, in other side there is an inverse relationship between credit risk of customers and Profitability ratios, Activity ratios and Qualitative variables.

Keywords

Credit risk, debt ratio, Qualitative variables, Liquidity ratios, Leverage ratios.

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