Analysis of Factors Affecting Bank Keshavarzi Credit Risk in North Khorasan Province

The agricultural sector, in order to develop, needs to inject financial resources and investment through two sources of consumer savings and formal and informal credit sources. Keshavarzi Bank plays a key role in the process of financing the agricultural sector in Iran. The survival of this role is highly dependent on the repayment of installments by the recipients of the bank loans, therefore, identifying and analyzing the determinants of farmers' behavior in repaying loan installments will play a key role in reducing the credit risk of loans paid by the Keshavarzi Bank. In this regard, using the information of 263 farmers in North Khorasan province that was collected in 2019 and also using a multi-group discriminant analysis model, the present study has tried to investigate the determinants of farmers' behavior in repaying the installments of loans received from the Keshavarzi Bank. The results of this study showed that the variables of having a history of receiving loans, non-agricultural income, receiving loans at the right time, having bak account turnover at the time of receiving loans, annual income, production scale, level of education, type of ownership, agricultural insurance and agricultural experience are the most important variavles in differentiating between different groups of loan repairers.