Designing a Credit Risk Management Model with a Focus on Collateral and Guarantees of Bank Loans

Abstract

Banks, due to their role in financial intermediation, have a significant impact on the economic and social development of countries. However, they are always exposed to risks such as credit risk, which requires effective management. Weakness in managing this type of risk can cause irreparable losses and even lead to bankruptcy. Identifying factors that reduce and control this risk plays a key role in the success of risk management. This study focuses on collateral and guarantees in bank loans, examining the factors influencing credit risk management. The research method is a mixed approach (qualitative-quantitative), and Bank Keshavarzi was selected as the case study. In the qualitative section, the factors were extracted through meta-synthesis and evaluated using the fuzzy Delphi screening technique. The statistical population included university professors, managers, and senior credit experts from the bank, who were selected purposefully. In the quantitative section, the relationships between factors were analyzed using a combination of Interpretive Structural Modeling (ISM) and MICMAC analysis in a fuzzy environment. The results indicated that 34 criteria were classified into four main categories and seven levels. Among these factors, the bank's high credit committee and the collateral seizure process were identified as the main foundations of credit risk management. MICMAC analysis revealed that these two factors, along with interest rate fluctuations and currency exchange rates, had a high impact and played an independent role in credit policy-making. These findings emphasize the importance of legal frameworks and macro-level decision-making in credit risk management and provide a significant guide for policymakers.