Estimation of loan repayment loss in Sarmayeh Bank using weed optimization meta-heuristic algorithm

Subject Areas : business management

zahra Rahmani ¹ ( Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran )
Mohammad Ebrahim Mohammadpoor Zarandi ² ( Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran )
Mohammadali keramati ³ ( Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran )

Received: 2021-11-27 Accepted : 2021-12-17 Published : 2022-12-22

Keywords: Loan Repayment Loss, Weed Optimization Meta-Heuristic Algorithm, Sarmayeh Bank,

Abstract :

Liquidity management has been one of the biggest challenges facing the banking system in Iran in the acute inflation conditions in recent years. Facilities granted by banks, regardless of inflationary conditions, usually lead to hidden losses in repayment of loans, resulting in reduced profitability and the risk of inability to meet obligations, resulting in the risk of bankruptcy. The present study aims to estimate the loan repayment loss in Sarmayeh Bank using the weed optimization meta-heuristic algorithm. In the present study, a model was designed to examine the loan repayment loss. Also, to compare the calculated results using the proposed heuristic formula and the income of the granted financial facilities in terms of loan repayment loss prediction, weed optimization meta-heuristic algorithm was used. The results showed that there is a negative correlation between loan repayment losses and the growth of Sarmayeh Bank profitability in high inflation conditions. Also, comparing the loan loss prediction between the calculated results using the proposed heuristic formula, the number predicted by the weed optimization algorithm and the income of the granted financial facilities showed that the loan repayment loss using the weed optimization meta-heuristic algorithm can be calculated.