Credit Risk Modeling of Refah Bank's Corporate Customers

The main aim of this research is to identify effective factors and to find a model in order to estimate credit risk of Refah Bank''s corporate customers. In order to do so، qualitative and fiscal information of a random 300-person sample of costumers who received credit facilities from Refah bank in 2012and 2013 were collected and effective factors on credit risk of corporate customers of this bank were estimated by using Logit regression model. Initially، 17 explanatory variables containing qualitative and fiscal variables were considered as effective factors on credit risk of customers and then from among those variables، 5variables that had meaningful effect on credit risk of corporate customers were chosen by using Likelihood Ratio test and final model was estimated by them. The result of the research indicates inverse effect of average account balance، ratio of sales returns، current ratio and direct effect of the number of bounced checks and ratio of deferred amount to current assets on credit risk of customers.