Analysis of Bank Allocation of Resources in Uncertainty Conditions Using Fuzzy Logic, A Case Study: Agricultural Bank, Tehran

One of the most important operations of banks in the economy is the allocation of their resources to the borrowers. In this regard, banks tend to optimize their utilities. This study aims to develop a decision model based on Analytic Hierarchy Process (AHP), Matematical Programming and Fuzzy Logic to assist Agricultural Bank, Tehran, for optimization of their credits in different sectors of the economy. The research has been done for the bank during the period of 2003- 2008. The results indicate that the current system of allocation of credits is not appropriate and the bank needs to change the percentage of credits to the various sectors. The study also shows that the Agricultural Industry has the priority to receive credits from the bank and the Horticulture, Natural Resources, Poultry and the Agricultural Machinery sectors, are the last ones to receive loans from the bank. The research also indicates that with the application of the optimizing process, the opportunity cost of lending funds to the borrowers is zero.