Abstract
The purpose of this study is to develop an evaluation model that considers the quantitative and qualitative criteria for the appropriate selection of firms demanding commercial credit for both public and private banks. In this paper, the authors propose an integrated model that combines the Analytic Hierarchy Process (AHP) and Grey Relational Analysis (GRA) into a single evaluation model. The model is illustrated with a case study on bank experts to demonstrate the effectiveness of this integrated method for four firms that applied for a commercial loan. In this study, AHP is applied to determine the weight of the criteria, and GRA is performed to determine the most appropriate firm. The results of this study indicate that, whereas firm morality and news criteria are the main criteria with the highest priority, sale and marketing constructions are the main criteria with the lowest priorities for both public and private banks. In addition, according to the results of GRA, the most appropriate firm for a public bank is Firm 1, and the most appropriate firm for a private bank is Firm 2.
Highlights
Various functions and service areas differ on their founding objectives, banks, whose most essential function is to provide funds, are the financial institutions of fundamental importance that bring together those demanding and those supplying funds
There will more expectations that the bank loans will be reimbursed with efficient implementation and management of the crediting processes and in a way that will minimise the damages that occur on account of the credit risk
This study used the Analytic Hierarchy Process (AHP) proposed by Saaty (1980) and Grey Relational Analysis (GRA) to select the most appropriate firm that applied for a commercial loan
Summary
Various functions and service areas differ on their founding objectives, banks, whose most essential function is to provide funds, are the financial institutions of fundamental importance that bring together those demanding and those supplying funds. Credit is the transaction of lending the obtained funds and equity capital of the banks to the natural and real entities within legal restrictions. This is done by considering the in-company statute of the bank itself on the condition that the loan will be reimbursed within a certain period of time according to the commitment to the debt. There will more expectations that the bank loans will be reimbursed with efficient implementation and management of the crediting processes and in a way that will minimise the damages that occur on account of the credit risk
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