Factors Shaping the Non-performing Loans in Iranian Banking System: A Case Study

This study aims to identify efficient factors shaping the non-performing loans in Iranian banking system. The Post bank is a case study which has been analyzed by using a survey method (random sampling). The statistical population is all post bank’s branches throughout the country including 151 of managers, province deputy managers, branch managers, credit and legal and debt collection specialists, and branch inspectors that have been selected randomly. To collect data, this study has used researcher-made questionnaire which has concept validity, reliability via Cranach's alpha coefficient rated 80%.
The main method on data analyses in the paper is Exploration Analytical method which carried out through SPSS software. The results indicate that the most significant elements shaping Non-performing loans in Post bank are discrepancy between collaterals and loans, lack of proficiency towards credit assessment, insufficient supervision on using and paying back process of loans, inadequate interest rate and payment penalty policies, legal restrictions, economic sanctions, and inappropriate business environment and credit assessment. These seven factors constitute 46% of dependent variable (banking non-performing loans) variance.