Role of Credit Strategies on Internal Credit Scoring: a Case Study of Iranian Private Banks

The aim of this study is to explain credit strategies of the private banks in internal credit scoring of consumers by performing case studies on three Iranian private banks and presenting solutions for improvement. Banks’ credit strategies model tested based on Iran Central Bank’s directives, and related dimensions. Statistical population includes: a) Credits encompassing the expert or the credit sector head; b) Branches including the superintendent, deputy, or head of the branches of three private banks of Tehran city, and an individual was selected from each branch or credit department.A questionnaire helps to collect and analyze the banks. Based on model, Proportion and Friedman test examines hypotheses. Analyzing the research data shows that by testing the hypothesis in each sample banks separately and cumulatively, half or more than a half of respondents selected the effectivenessoptions based on which the confirmation of the presented hypothesis is gained. The model of this research includes new dimensions that are in symmetry with the environment in which the most important indices mentioned by I.R. Iran Central Bank for awarding facilities to the consumers are cumulatively appraised.

Credit Assessing; Credit Risk; Credit Reporting; Credit Scoring Models; Bank Strategies.