Journal of Advertising and Sales Management

Journal of Advertising and Sales Management

Minimizing the credit risk of customers by using the detection of the amount of risk in banks

Authors
Mehdi Salamati 1
Ahmad Gaeeni 2
1 PhD student, Department of Industrial Engineering, Ivanki University, Semnan, Iran
2 Assistant Professor, Faculty of Industrial Engineering, Ivanki University, Semnan, Iran.
JABM.3.2.15564.358898
Abstract
There are many methods to calculate the credit risk of customers of an individual or an institution, but in this article we seek to predict the amount of credit risk of customers in different sectors such as industry, agriculture according to economic indicators such as exchange rate fluctuations. These calculations will determine the amounts required for allocation to different departments and cities at the beginning of each year so that the minimum amount of risk occurs. In this research, using the data related to the banks of Semnan province, we have calculated the amount of credit risk of customers in different departments and in different cities, in such a way that by using clustering, we first examined the factors affecting non-repayments. then we have given scores to each cluster using clustering, then we have calculated the score of each city in each section using the return score of facilities and clustering. According to the numerical results, we conclude that Shahroud is known as an agricultural hub in Semnan province, so the allocation of agricultural resources is better in this city, and on the opposite point, Aradan does not have a good situation in agriculture at all. Also, Semnan is an industrial hub, and for this reason, the allocation of industrial sector loans in this city is more efficient, on the other hand, Miami is not an industrial city at all and should not receive funding in this sector.
Keywords
Customer credit risk
customer credit risk management
outstanding receivables
exchange rate fluctuations
Basel Committee

Subjects

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Journal of Advertising and Sales Management
Volume 4, Issue 2 - Serial Number 14
Summer 2023
Pages 361-375