The effect of diversification of the credit portfolio on bank’s credit risk
The credit portfolio management and the optimal credit portfolio selection are identified as one of the most effective factors in banks’ credit risk. Two main strategies in this regard include diversification versus concentration. In this study, at first, the status of diversification of Iran’s bank...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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University of Tehran
2016-05-01
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| Series: | تحقیقات مالی |
| Subjects: | |
| Online Access: | https://jfr.ut.ac.ir/article_52458_97af256cfc62442e4d949d3213f744d1.pdf |
| _version_ | 1818155360894058496 |
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| author | Ezatollah Abbasian Saman Fallahi Samad Rahmani |
| author_facet | Ezatollah Abbasian Saman Fallahi Samad Rahmani |
| author_sort | Ezatollah Abbasian |
| collection | DOAJ |
| description | The credit portfolio management and the optimal credit portfolio selection are identified as one of the most effective factors in banks’ credit risk. Two main strategies in this regard include diversification versus concentration. In this study, at first, the status of diversification of Iran’s banking sector is analyzed, then the relationship between diversification of the credit portfolio and credit risk is considered. It should be noted that in order to measure credit portfolio diversification two set of naive indexes and benchmark (distance) indexes is used. The empirical evidences have obtained through a panel data analysis in a sample of 16 Iranian banks during 2006 to 2011 time period. The findings indicate that increase in credit portfolio diversification lead to increment in bank’s credit risk and this relationship is independent of the type of bank ownership. |
| first_indexed | 2024-12-11T14:41:10Z |
| format | Article |
| id | doaj.art-e5af6bbb7849487aac39bfd9ee001559 |
| institution | Directory Open Access Journal |
| issn | 1024-8153 2423-5377 |
| language | fas |
| last_indexed | 2024-12-11T14:41:10Z |
| publishDate | 2016-05-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | تحقیقات مالی |
| spelling | doaj.art-e5af6bbb7849487aac39bfd9ee0015592022-12-22T01:01:55ZfasUniversity of Tehranتحقیقات مالی1024-81532423-53772016-05-0118114916610.22059/jfr.2016.5245852458The effect of diversification of the credit portfolio on bank’s credit riskEzatollah Abbasian0Saman Fallahi1Samad Rahmani2دانشیار گروه اقتصاد، دانشکدة اقتصاد و علوم اجتماعی، دانشگاه بوعلی سینا، همدان، ایراندانشجوی دکتری علوم اقتصادی دانشکدة اقتصاد، دانشگاه تهران، تهران، ایراندانشجوی دکتری علوم اقتصادی، دانشکدة علوم اداری و اقتصاد، دانشگاه اصفهان، اصفهان، ایرانThe credit portfolio management and the optimal credit portfolio selection are identified as one of the most effective factors in banks’ credit risk. Two main strategies in this regard include diversification versus concentration. In this study, at first, the status of diversification of Iran’s banking sector is analyzed, then the relationship between diversification of the credit portfolio and credit risk is considered. It should be noted that in order to measure credit portfolio diversification two set of naive indexes and benchmark (distance) indexes is used. The empirical evidences have obtained through a panel data analysis in a sample of 16 Iranian banks during 2006 to 2011 time period. The findings indicate that increase in credit portfolio diversification lead to increment in bank’s credit risk and this relationship is independent of the type of bank ownership.https://jfr.ut.ac.ir/article_52458_97af256cfc62442e4d949d3213f744d1.pdfcredit risknon-performing loandiversificationpanel data |
| spellingShingle | Ezatollah Abbasian Saman Fallahi Samad Rahmani The effect of diversification of the credit portfolio on bank’s credit risk تحقیقات مالی credit risk non-performing loan diversification panel data |
| title | The effect of diversification of the credit portfolio on bank’s credit risk |
| title_full | The effect of diversification of the credit portfolio on bank’s credit risk |
| title_fullStr | The effect of diversification of the credit portfolio on bank’s credit risk |
| title_full_unstemmed | The effect of diversification of the credit portfolio on bank’s credit risk |
| title_short | The effect of diversification of the credit portfolio on bank’s credit risk |
| title_sort | effect of diversification of the credit portfolio on bank s credit risk |
| topic | credit risk non-performing loan diversification panel data |
| url | https://jfr.ut.ac.ir/article_52458_97af256cfc62442e4d949d3213f744d1.pdf |
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