Banks Credit Risk, with Emphasis on Audit Report of Legal Customers (in Persian)

Sajad Kordmanjiri (), Iman Dadashi (), Zahra Khoshnoud () and Hamidreza Gholamnia ()
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Sajad Kordmanjiri: babol branch
Iman Dadashi: babol branch
Zahra Khoshnoud: Monetary and Banking Research Institute
Hamidreza Gholamnia: babol branch

Journal of Monetary and Banking Research (فصلنامه پژوهش‌های پولی-بانکی), 2019, vol. 12, issue 41, 551-576

Abstract: The increasingly expansion credit risk in the form of non-current debts reduces the bankchr('39')s financial ability to provide facilities and profitability, and could ends up in monetary & financial crisis through its externalities from banking sector to other economic sectors. Therefore, controlling this risk by focusing on the factors that influence its creation is important. Although various variables affect credit risk formation, this study emphasizes the characteristics of audit reporting and non-financial variables of credit risk default and occurrence of credit risk, which are less considered. To this end, the audit features and non-financial variables from 635 of Sepah Bankchr('39')s legal customerschr('39') facilities were extracted for the period 2006-2017 and were predicted by logistic regression, credit risk and default probability. The findings indicated the key role of audit variables including ambiguity in continuity of activity, number of explanatory clauses, and auditor tenure, along with non-financial variables, on credit risk.

JEL-codes: G17 G21 G32 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:mbr:jmbres:v:12:y:2019:i:41:p:551-576

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