IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/qm8hb.html
   My bibliography  Save this paper

Discovering Hidden Patterns in Loan Reimbursement

Author

Listed:
  • Niknamian, Sorush

Abstract

Loans are the major resources at banks. However, in some cases the cost that they incur to banks soar and finally makes them detrimental, as a result of irregular or delaying reimbursement or not paying at all. Due to the low wage rates in Iranian banks and the Central Bank of Iran (CBI) regulations in determining interest rates for deposits and loans, banks are becoming more and more dependent to the loans and their related profits. Therefore, banks have to look for customers with low risk for punctual payment. According to defect loan reimbursement in past years, banks have to specify severe prerequisites and limited contracts in granting loans to their customers. Contravening banking regulations and lack of consistent customers' accreditation banks are getting into heavy losses. Evaluating situations of the granted loans in EN Bank of Iran during a six-month period, based upon the profiles and loans history and the trend of payments useful patterns are discovered; designing a practical model of loan payment in Iran, the future default or failure to regain the granted loans is predicted and sensible methods of granting loans in Iran are developed. In order to extract hidden patterns in data statistical methods and data mining tools with focus on decision tree techniques are applied.

Suggested Citation

  • Niknamian, Sorush, 2019. "Discovering Hidden Patterns in Loan Reimbursement," OSF Preprints qm8hb, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:qm8hb
    DOI: 10.31219/osf.io/qm8hb
    as

    Download full text from publisher

    File URL: https://osf.io/download/5e0a8fd9fbb1ef004fd821fc/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/qm8hb?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. M. Kabir Hassan & Mervyn K. Lewis (ed.), 2007. "Handbook of Islamic Banking," Books, Edward Elgar Publishing, number 3621.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hassan Belkacem Ghassan & Abdelkrim Ahmed Guendouz, 2019. "Panel modeling of z-score: evidence from Islamic and conventional Saudi banks," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 12(3), pages 448-468, July.
    2. Abdelsalam, Omneya & Elnahass, Marwa & Ahmed, Habib & Williams, Julian, 2022. "Asset securitizations and bank stability: Evidence from different banking systems," Global Finance Journal, Elsevier, vol. 51(C).
    3. Ashraf, Dawood & Mohammad, Nazeeruddin, 2014. "Matching perception with the reality—Performance of Islamic equity investments," Pacific-Basin Finance Journal, Elsevier, vol. 28(C), pages 175-189.
    4. Mesbahi Moghadam , Gholamreza & Asadi , Gholamhosein & Sajadi , Seyed Ali, 2015. "Conceptual Model of Islamic Commercial Paper for Banks and Credit Institutions on the Basis of Murabaha Sukuk," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 10(3), pages 73-85, July.
    5. Ashraf, Dawood & Khawaja, Mohsin, 2016. "Does the Shariah screening process matter? Evidence from Shariah compliant portfolios," Journal of Economic Behavior & Organization, Elsevier, vol. 132(S), pages 77-92.
    6. Duqi, Andi & Jaafar, Aziz & Warsame, Mohammed H., 2020. "Payout policy and ownership structure: The case of Islamic and conventional banks," The British Accounting Review, Elsevier, vol. 52(1).
    7. Muhammad Zeeshan Asif, 2022. "The Significance Of Corporate Governance In Islamic Banking: Enhancing Accountability And Performance," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(4), pages 25-32.
    8. Neifar, Malika, 2020. "Different dimensions Bank performance comparisons IBs vs CBs – Quatar case," MPRA Paper 101375, University Library of Munich, Germany.
    9. Hassan B. Ghassan & Stefano Fachin, 2016. "Time series analysis of financial stability of banks: Evidence from Saudi Arabia," Review of Financial Economics, John Wiley & Sons, vol. 31(1), pages 3-17, November.
    10. Uddin, Godwin & Ashogbon, Festus & Martins, Bolaji & Momoh, Omowumi & Agbonrofo, Hope & Alika, Samson & Oserei, Kingsley, 2021. "The banking sector and national economy," MPRA Paper 105485, University Library of Munich, Germany.
    11. Diaw, Abdou & Bacha, Obiyathulla Ismath & Lahsasna, Ahcene, 2011. "Public Sector Funding and Debt Management: A Case for GDP-Linked Sukuk," MPRA Paper 46008, University Library of Munich, Germany, revised 2011.
    12. Sami Ben Naceur & Adolfo Barajas & Alexander Massara, 2017. "Can Islamic banking increase financial inclusion?," Chapters, in: M. Kabir Hassan (ed.), Handbook of Empirical Research on Islam and Economic Life, chapter 9, pages 213-252, Edward Elgar Publishing.
    13. Wahida Ahmad & David Prentice, 2023. "How Large Are Productivity Differences Between Islamic And Conventional Banks?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(05), pages 1651-1670, September.
    14. Azad, A.S.M.S. & Azmat, Saad & Chazi, Abdelaziz & Ahsan, Amirul, 2018. "Sailing with the non-conventional stocks when there is no place to hide," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 57(C), pages 1-16.
    15. Abdul Azim Islahi, 2011. "Linkages and Similarities between Economics Ideas of Muslim Scholars and Scholastics الروابط وأوجه الشبه بين الأفكار الاقتصادية للعلماء المسلمين والمدرسين المسيحيين," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Lectures in Islamic Economics and Finance, Selected From Wednesday Seminars-06 محاضرات في الاقتصاد والتمويل الإسلامي - مختارة من حوارات الأربعاء -6, edition 0, chapter 3, pages 307-332, King Abdulaziz University, Islamic Economics Institute..
    16. Faisal Alqahtani, 2018. "Economy Downturn, Islamic Banking and the Indirect Consequences of the Global Financial Crisis," Review of Economics & Finance, Better Advances Press, Canada, vol. 12, pages 72-87, May.
    17. Hugues Martin-Sisteron, 2011. "Adapting the Demands of the Islamic Moral Order to Project Finance: Prospects for French Law in Connection with an Istisnaa-Ijara Structure تكييف متطلبات النظام الأخلاقي الإسلامي حسب قانون تمويل المشا," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Lectures in Islamic Economics and Finance, Selected From Wednesday Seminars-06 محاضرات في الاقتصاد والتمويل الإسلامي ، مختارة من حوارات الأربعاء -6, edition 1, chapter 4, pages 333-418, King Abdulaziz University, Islamic Economics Institute..
    18. Md. Mahmudul Alam & Chowdhury Shahed Akbar & Shawon Muhammad Shahriar & Mohammad Monzur Elahi, 2017. "The IslamicShariahprinciples for investment in stock market," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 9(2), pages 132-146, May.
    19. Mirakhor, Abbas, 2012. "Islamic Finance, Risk Sharing and Macroeconomic Policies," MPRA Paper 56338, University Library of Munich, Germany.
    20. Alchaar, Osama & Masih, Mansur, 2018. "Do islamic or conventional mutual funds lead economic growth? evidence from Malaysia," MPRA Paper 107224, University Library of Munich, Germany.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:qm8hb. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.