Investigating the relationship between credit risk indicators and timely fulfillment of the customers' obligations (a case study of bank sepah branches in east Azerbaijan and Ardabil regions)
Keywords:Sepah Bank, Obligations, Credit Risk, Logistic Regression.
This research was conducted with the aim to investigate and identify the relationship between credit risk indicators and timely fulfillment of the legal customersâ€™ obligations of Sepah Bank. To do this, credit data and financial ratios of 370 cases of Sepahâ€™s Bank legal customers who had used credit services of Sepah Bank branches in East Azerbaijan and Ardabil regions during a period from 2012-2014 were collected. In this respect, data related to 27 financial ratios as explanatory variables of 370 cases of the mentioned sample were extracted from their credit files and were selected to be tested after performing required refinement and classifying in two groups of extracted data from audited and unaudited financial statements. Then the relationships between these variables and timely fulfillment of obligations were investigated using logistic regression method and considering the significance of the independent variables at 95% confidence level. The results of the research showed that accounting, current, and acid test ratios, working capital, return on total assets, return on equity and gross profit to sell listed in unaudited financial statements group and current ratio/ liquidity ratio, current assets ratio, accounts receivable turnover ratio, return on total assets, debt-to-equity ratio, debt to asset ratio, current debts to equity ratio listed in audited financial statements group have a significant relationship with timely fulfillment of the customers' obligations.
 Erfani, A R, Hemati, M, (2014), ranking the factors affecting banking sources TOPSIS method in Semnan province (TOPSIS), Semiannual journals of Monetary, Financial Economics, 21st year, No 8.
 Bahmand, M and Bahmani, M, (2007), Domestic banking (equipping monitory resources), Higher Institute of Banking publication, Iran, Tehran
 Malekinia N, (2005), designs loan optimal portfolio to reduce credit risk level, Master Thesis, Shahid Beheshti University, Iran.
 Ranjbar Motlagh, L, (2005), Principles of credit risk management, Department of Banking Studies and Regulations, Central Bank of the Islamic Republic of Iran.
 Shamsoldini, A, (2010), Principle of Bank Saderat credit risk management. 10th year.
 Honari Far, M, (2011), investigating the relationship between credit risk and unpaid receivables of banks, Master Thesis, Islamic Azad University, Central Tehran Unit.
 Gholmi, A and Salimi, Y (2014), Investigation of the relationship between management of credit risk and liquidity management with profitability in the banking system, first International Conference on Economics, Management, Accounting and Social Sciences, Rasht.
 Shavalpour, S, Ashari, E (2013). Investigating the effect of credit risk on the banks profitability in Iran. Financial research, 15, 2.
 Kimia Gari, M A, Amini, M J, Tabatabaei Arani, H, Hosseini, (2012), Model of credit risk for loan payback for credit customers of banks (Case study. Shahreza Branch Bank Meli), 9th International Conference of Industrial Engineering, Tehran, Iran Institute of Industrial Engineering, University of Khajeh Nasir al-Din al-Tusi, http://www.civilica.com/Paper-IIEC09-IIEC09_203.html
 Khosh-sima, R, Shahiki-Tash M N, (2011). The effect of credit, operational and liquidity risks on the efficiency of banking system in Iran. The Journal of Planning and Budget, 17th year, No4.
 Imbierowiczi, B, Rauch, C, (2014), Â«On the Interrelation of Liquidity and Credit Risk in BanksÂ», Journal of Banking & Finance 40 (2014) 242â€“256. https://doi.org/10.1016/j.jbankfin.2013.11.030.
 Basle committee of Banking supervision, (1999) Credit Risk Modeling: current practices & Applications1999.