Assessing the Effect of Bank Interest Rates on Fluctuations in Overdue Receivables of the Banking Network in Iran

Today, one of the most important tasks of banks in society is to collect stray funds and guide them in various economic sectors. Therefore, due to the dispersion of these funds in the country, the role of collecting such deposits is of particular importance. On the one hand, granting facilities in different economic sectors requires accurate knowledge of these sectors, and on the other hand, in our country, due to the lack of infrastructure such as comprehensive credit information banks that provide accurate and upto- date information to banks and the lack of institutions Ranking and accreditation of customers, financial and investment consulting companies, credit guarantee companies, etc. has intensified the increase in banks' risk in granting facilities. So much so that today one of the main problems of the country's banking system is past due and overdue receivables of facilities granted and how to receive them. The purpose of this study is to evaluate the effect of bank interest rates on fluctuations in overdue receivables of the country's banking network during the period 1979-59. For this purpose, the method of "self-regression with distributed intervals" (ARDL) has been used. The results show that in the long run, the difference between the interest rate of bank facilities and the interest rate of the unorganized monetary market and country risk has had a significant weak effect on the ratio of banks' overdue receivables. GDP has a significant inverse effect on the ratio of delinquent receivables. Also, the estimation of the long-term model shows the stability of the estimated coefficients so that there is a positive and significant relationship between the ratio of overdue receivables and independent variables of the model such as bank size, customs imports and oil revenues. Also, to ensure the achievement of imbalances in the short run towards long-term equilibrium through the dynamic model in the form of "error-correction pattern" (ECM) was observed, which according to the error sentence coefficient in each period of 0.74 of the lack The short-term equilibrium adjusts the ratio of delinquent receivables to achieve the long-term equilibrium.