Exogenous credit risk in Iranian banks

Abdul Rahman Rashidfard

Abstract


Examining the economic system shows that countries with an efficient model in allocating capital to different economic sectors often enjoy economic progress and, as a result, higher social welfare. Banks are one of the most important factors of economic progress, and on the other hand, any growth in the economy is associated with risks. In this research, the exogenous credit risk in Iranian banks and the factors affecting them have been evaluated. The results of this research indicated that profitability, capital turnover, assets and age of the bank are among the items related to credit risk in Iranian banks. Based on this, it can be concluded that larger banks with more experience have more credit risk; Because their ability to face this risk is greater.

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References


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