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Surveying Effective factors for Outstanding Bank and Present Solutions for decreasing that by system dynamics (Case study: Mellat bank in west Azarbaijan)

Author Affiliations

  • 1 Department of industrial Management, Tabriz branch, Islamic Azad University, Tabriz, IRAN

Res. J. Recent Sci., Volume 2, Issue (9), Pages 29-39, September,2 (2013)


In recent years, the growing volume of deferred loans, and consequently, the blockage of a considerable amount of bank resources, has led to a decrease in the circulation of the resources and made impossible accurate and exact planning for optimal use of them. Resolving this problem (i.e., decreasing the deferred loans and increasing the speed of circulation of resources) is one of the most important challenges of the banking system. The main purpose of the present study is to identify the causes of deferred loans and to introduce ways of reducing them, using the system dynamics. The study is of basic-applied type. The managers of Mellat Banks across the West Azarbijan province constitute the population of the study. In order to obtain the effective variables, all the managers were interviewed, and the variables which were of little effect were identified and excluded using t-test. After the effective variables had been identified, the cause-effect and flow-stack diagrams were drawn, and the behavior of the model was compared with real data which were available for the past 5 years. After successful examination of the model, a simulation was carried out for the following year and, by changing the amount of each variable, the best scenario was selected. The factors under the control of Mellat Bank as well as those available to the Central Bank were identified as the most effective factors.


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