Credit Risk and its Affecting Factors in Iran Agricultural Bank Loans

Abstract

This paper aimed at studying the credit risk and those factors affecting the risk in different types of Iran Agricultural Bank (IAB) credit facilities through the panel data model. Accordingly, detailed information of all types of IAB credit facilities (micro, small, medium and macro) from all provinces, within 2009-2013, were analyzed. The results estimated by the model indicate that the educational degree and monthly income have negative and significant impact on credit risk, while the number of family members, credit background and the value of credit facilities positively and significantly impact the credit risk. Moreover, the risk is affected negatively and significantly by the age variable.