Analyzing the Effecting Factors on Credit Risk, With the Approach of Islamic Contracts,The Case Study of Samen-Al-Aemeh of Ardebil Province

Credit risk management always has been a problem for the banks. The correct identification of factors affecting the measurements of the validity of customer when lending, has a significant impact on the success of any financial institution and credit. This paper investigates the impact of the effective factors on the credit risk with particular emphasis on the role of Islamic contracts. For this purpose, we have used logit model to predict credit risk and factors affecting it. By analyzing the available information contained in records of 500 customers of Samen credit institution (Ardebil Province), amount of loan, distance installment, profit, interest rate, gender, borrower contracts type, type of security have been selected as the independent variable and credit risk as the dependent variable. After estimating the model, it was found that all the variables have a significant impact on the credit risk in the under study financial institution.