Optimal Allocation of Bank Credit among Agricultural Subsectors under Uncertainty Condition

Department of Agricultural Economics, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran 


Feizabadi, Y. and M. Akbarian, 2018. Optimal allocation of bank credit among agricultural subsectors under uncertainty condition. Bulg. J. Agric. Sci., 24 (3): 360–367

One of the institutions that play an important role in financing the agricultural sector is Agricultural Bank. Since there is still no specific model for optimal allocation of Agricultural Bank credits in Iran, this research seeks to provide an optimal model for allocation of credits using multi-criteria linear programming based on Analytic Hierarchy Process (AHP) and fuzzy logic, considering the risk and uncertainty conditions. The study period is related to the data of Agricultural Bank between 2011 and 2015. Using Cochran’s Formula, the sample size has been calculated 39 people out of the statistical population including all bank experts in Mazandaran province. Results show that the current model of credit allocation in Agricultural Bank is not optimal so that the first prioritization of credit allocation should belong to agricultural industries and agricultural services followed by farming, livestock, non-agricultural sector, horticulture, poultry, fishery, natural resources and machinery respectively.

Key words: optimal allocation; agricultural bank credits; multi-criteria linear programming; analytic hierarchy process; risk and uncertainty

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