Standalone Credit Rating of the Country's Banks

Abstract

Objective: The purpose of this research is to assess the standalone credit rating of banks from the perspective of depositors (bank's external stakeholders) to fulfill their commitments. Methods: For this purpose, using ranking models of the standard grand agencies and the CAMELS (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity and Sensitivity) rating system, the ranking indexes were identified, and then applying a fuzzy Delphi method the ranking indices were determined and the banks were rated using the PROMETHEE method (Preference Ranking Organization Method for Enrichment of Evaluations). Results: Finally, 32 indicators were selected based on the results of the fuzzy Delphi method and according to experts, the weights of the sub-criteria were considered the same. The Banks, which are used as samples in this research, include 21 banks with permission from the central bank of Iran and accepted in the Tehran Stock Exchange and Over-The-Counter Market of Iran. The banks were evaluated based on their activities from 2012 to 2016. Conclusion: Based on the rating outcome, Khavaremiane Bank is considered with the highest credit rank, and the Ayande bank is in the worst situation (the least credit rank) among these banks.

Keywords

• Stand-alone Credit Rating
• PROMETHEE
• Banking Industry
• Fuzzy Delphi Method