Studying the Impact of Effective Factors Influencing on Credit Risk and Prioritization of Credit Valuation Criteria of Banking Clients

In this paper, an attempt is made to review the relevant theories and concerned literatures of the subject, and then we tried to postulate and examine the key variables affecting on credit risk of bank clients with respect to application of 6C model which comprises the qualitative and financial variables i.e, character, capacity, capital, collateral, conditions and conditions and term of loans criteria and subsequently, based upon them, we have derived 28 auxiliary variables. However, the statistical population of this paper contains branch mangers, assistant managers, and credit officers of all Melli Bank branches located in West Azarbaijan province, who are all considered to be 186 individuals and have been chosen in accordance with our value judgement in toto. Similarly, by observing the number of banks branches under the study, we have set up 125 statistical samples vis-à-vis using the Cochran formula of classification criteria. We have also collected the required data from the questionnaire which we prepared in consonance with the opinion extracted from the banks experts and designed through utilization of Random Stage Sampling Method per se. Eventually, for determining the weight of data, we exploited the Paired Comparison Method, and in turn, for specification of rating between 6C variables and 25 auxiliary variables, and estimating the impact of key variables on credit scoring, we applied the Analytical Hierarchy Process Approach via, employing the Expert Choice Software therein. The results prima facie, indicate that hinged upon the 6C model principle, there are certain differences within the credit scoring criteria, so that, the collateral factor, bears the highest priority while the other factors i.e, capital, character, capacity, conditions, and conditions and term of loans criteria, are placed in order Sui generis, in the next priority, respectively.