Credit risk management tools ranking in useless banking Using the AHP technique

Equipping and allocating resources to economic activities is done through the financial market where the bank credit market is part of that market. The high reserves of banks and the refurbished or overdue facilities indicate that the banking system does not use credit risk management tools well and that there is no proper model for managing credit risk in the banking network. The present study analyzed Islamic credit risk management tools using AHP method by analyzing the opinions of 32 Islamic banking experts including banking managers and university professors selected based on snowball technique. Using Expert choice software has prioritized. The results of the hierarchical analysis based on two measures of coverage and efficiency show that they are in the first to fifth rank as collateral and guarantee instruments, validation, commitment, credit derivatives and loan loss reserve respectively. From the subdivisions of Guarantee and Collateral, cash collateral is ranked first and employee collateral is ranked second. From the sub-categories of validation, capacity comes first and certifications come second. Of the financial and non-financial penalties, financial penalties are first and foremost, saving is first among the subdivisions of loan loss than collateral-dependent storage.</span></font></span>