Identifying Effective Factors on Nonperforming Loans and its Reduction in the Sixth Development Plan
If the borrower, refuses to returning all or part of the loan, unreturned amount, is called nonperforming assets. Nonperforming assets of the banks is the result of the economic conditions and high levels of inflation and reflects poor performance banks in the management of resources and expenditure.Inceasing the nonperforming assets of banks, will bring decreasing banks facilities, inflation and the underground economy. In this study, to reduce the nonperforming assets of banks in the sixth development plan, for instance, factors affecting nonperforming assets of Melli banks of Markazi Province will be investigated. Independent variables impact ,the number of warnings, time of the facilities repayment, amount of credit facilities, interest and inflation rates and dummy variables of collateral, bank supervision and education of borrowers on dependent variable (the amount of nonperforming assets) between the years 1368 to 1388 were investigated using SPSS and by OLS method . Among the above variables , time of the facilities repayment and amount of credit facilities have positive and significant effect on nonperforming assets of Melli Banks and it means the nonperforming assets will increase by its increase.
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Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)
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