A Novel Hybrid Model for Loan Allocation in Banking Investment Projects (Case Study: Bank Toseeye Taavon)

Document Type: Research Paper

Authors

Abstract

In this paper, a new hybrid model has been proposed
for the loans allocation of banking investment projects. In this model, firstly
uncertainty in the cash flows parameters of projects is simulated using
probability distributions. The statistical analysis about the indexes of
engineering economic is used for the elimination of non-economical projects.
Secondly, remained projects are ranked based on financial and non-financial
indexes and AHP-TOPSIS approaches. Finally, a 0-1 mathematical programming is
used for loans allocation to projects based on ranking of projects (as projects
utilities) and the constraints of banking investment. To consider the
performance of the proposed model, the investment projects of bank Toseeye
Taavon in a specified time interval are evaluated using this model. The results
of allocations are shown the validity and efficiency of proposed model based on
the opinions of banking experts.

Keywords