Presentation of a desirable model for identifying and examining credit risk reduction strategies in the Melli Bank of Iran

Articles in Press

Document Type : Original Article

Authors

Ali Jalalimajidi ¹

jamal Barzegarikhaneghah ²

Mahmoud Lari Dashtbayaz ³

Mohsen Jalalimajidi ⁴

¹ Department of Accounting، Qae.C.، Islamic Azad University، Birjand ، Iran

² Department of Accounting ،Yazd University،Yazd، Iran

³ Department of Accounting، Economics and Administrative sciences Ferdowsi University of Mashhad، Mashhad، Iran

⁴ Department of Management، Tabi.C.، Islamic Azad University، Tabas، Iran

https://doi.org/10.22067/mfe.2026.95836.1622

Abstract

The increase in non-performing loans and the growing complexity of the economic environment have posed serious challenges for banks in reducing credit risk. In this context, Bank Melli Iran, as the largest state-owned bank in the country, is more exposed than other banks to the consequences of credit risk due to the breadth of its operations and its strategic role in the monetary system. The purpose of this study is to propose a comprehensive model for identifying and explaining strategies to reduce credit risk in Bank Melli Iran.

This research is applied in terms of purpose and adopts a mixed-methods (qualitative–quantitative) approach. In the qualitative phase, effective components and strategies for credit risk reduction were identified and refined using qualitative content analysis and the fuzzy Delphi method. Subsequently, in the quantitative phase, interpretive structural modeling (ISM) was employed to level and structure the relationships among the components, and finally, the proposed model was tested and validated using structural equation modeling (SEM).

The findings indicate that economic factors, governance-related factors, and credit and managerial policies play the most significant causal role in reducing credit risk, while other factors such as human resources, process management, and information systems are positioned at the more influenced levels of the model. Overall, the results suggest that focusing on effective credit policies and the efficient management of economic variables plays a key role in improving asset quality and controlling credit risk in Bank Melli Iran.

Keywords

Credit risk reduction

qualitative content analysis

fuzzy Delphi

interpretive structural modeling

structural equation modeling

Subjects

• Financial monetary economy

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