Identification the Factors Affecting the Probability of Non- Repayment of Banks Credit Facilities

Subject Areas :

Naser Ali  Yadolahzadeh Tabari ¹ (Assistant Professor of Economics, Babol Branch, Islamic Azad University, Babol, Iran)
Erfan  Memarian ² (Assistant Professor of Economics, Babol Branch, Islamic Azad University, Babol, Iran)
Atefeh  Nasiri ³ (M. A in Management, Babol Branch, Islamic Azad University, Babol, Iran)

Received: 2015-09-25 Accepted : 2015-09-25 Published : 2014-06-22

Keywords: Credit Risk, Probit Model, granted facilities, Credit rating, credit model,

Abstract :

This study aims to identify the factors influencing credit risk and provide a model for real clients credit rating, the applicants of Mehr Imam Reza fund facilities in Babolsar, from 1388 to1391. In order to explain more, default probability of 15 explanatory, demographic (age, sex, education, …) and financial variables(the loan value of the collateral) were considered. The results indicate that the implementation status and gender variables have been the most important factors affecting the probability of non-repayment of loans. Of course the type of collateral, skill experience, financial status and the background of activities are effective as well in reducing the risk of non-repayment of loans