Factors Affecting Supply of Credits in the Agricultural Bank.

Document Type : Research Paper

Authors

1 PhD student in Agricultural Economics Engineering, Islamic Azad University, Tehran Center, Tehran, Iran

2 Associate Professor, Faculty of Economics and Accounting, Islamic Azad University, Tehran Branch, Tehran, Iran

3 Associate Professor, Faculty of Agricultural Sciences and Food Industry, Islamic Azad University, Science and Research Unit, Tehran, Iran

4 Assistant Professor, Department of Economics, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

Banks are considered as one of the most important sources of financing in various economic and social fields in many developing countries such as Iran. In this regard, financing the production units of the agricultural sector is one of the most important issues in managing the banking and economic system of a country. Since access to credits provided by banks to finance the needs of people and manufacturing enterprises in various sectors such as agriculture sector provides more investment and improves the agricultural industry and leads to economic growth and development. Hence, the main purpose of this study is to investigate the factors affecting the supply of banking credits in the Agricultural Bank of Iran. To this, the data from 2007 to 2021 and the panel data approach have been used. The results show that non-current receivables have a negative effect and interest rates on bank credits, provincial inflation, GDP growth and bank size have a positive effect on the supply of credits of the Agricultural Bank in Iran. The study of Iran's economic situation shows that despite the important role of bank credits in the process of economic growth and development, the country's economy has not been able to make optimal use of the benefits of bank credits to elimination deficiencies and financing needs of the agricultural sector. Accordingly, it is suggested that monetary and banking policymakers pay special attention to this issue.

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References

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