Factors affecting the credit risk of bank customers: a case study of Bank Saderat Iran, Mazandaran Province Branches

Banking system in each country is the most important factor of economic growth and presenting financial facilities is one of the significant activities of a banking system. As the economic growth and development demands investment in different sectors of economy and financial supply, the assurance of the return of credits is necessary for the financial institutes. So, in granting facilities, the degree of credit and return power of the facilities should be evaluated. The present article has been developed aiming at studying the factors affecting the credit risk of customers of Bank Saderat Iran, Mazandaran province branches in the time period of 2011-2012. In line with this objective, variables such as current assets, fixed assets, total assets, current debts, debtorʹs account performance before the branch, creditorʹs account performance before the branch, registered capital, capital rate of return and record of the activities of 20 random samples from the companies which had received credits from the branches of Bank Saderat Iran, in Mazandaran province were reviewed. The relationship among these variables has been analyzed using binary logistic regression. The statistical resources of the research, has been collected through referring to the documents of the branches of Bank Saderat Iran, in Mazandaran province. The results of binary logistic regression show that only the capital rate of return and record of companiesʹ activities have been influential in the credit risk of customers of Bank Saderat in Mazandaran province.