Quarterly Studies in Banking Management and Islamic Banking

Explaining and Examining the Credit Rating Systems of Companies Listed on the Tehran Stock Exchange with Emphasis on Statistical Regressions Accepted in Banks Credit Risk

Document Type : Original Article

Author

Aboutaleb Mehrfar

PhD in Accounting, Sepah Bank, Tehran, Iran

https://doi.org/10.22034/jifb.2022.328229.1342
Abstract
Currently, one of the most important issues that banks and financial institutions always face is the issue of credit risk or the possibility of non-fulfillment of obligations by applicants receiving credit facilities. Therefore, the main purpose of this study is to explain and review the credit rating system of banks in facility files of companies receiving facilities based on the accepted regressions in credit risk and review of financial ratios of these companies. The statistical population of this research consists of 97 listed companies in the period from 2016 to 2021. The results show that the coefficients of independent variables in data mining techniques are higher and the logit model has a higher fit and is more accurate than the good probit model. Current ratios (CUR), turnover (STA) and return on sales (NTS) also play a greater role in assessing default risk.

Keywords

Customer evaluation
Logit model
Probit model
Default risk
Credit risk
Data analysis

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