The use of linear programming in developing the Islamic bank credit policy: Elaf Islamic Bank as a model

Abstract

This study amis at how to use quantitative methods to develop the Islamic bank credit, policy and to know the types of funds in which the bank places, its deposits and try to distribute those deposits in an optimal, distribution on the types of finances using scientific methods.In this study the liner programing method will be used which is considered one of the optimal quantitative methods, which means how to allocate and optimally distribute the available, resources to alternative uses scientific way that guarantees, banking safety and thus enhances and strengthens its financial position.Building a mathematical model using the linear programming method seeks to clarify how the model is used in drawing up credit policies for banks, and det identifying optimal Plans that seek to maximize profits and facilitate the process of reaching the optimal solution, program will be applied (win Quantitative System for business)it is symbolized by the symbol (Win QSB) this program is characterized by its ability to deal with a large number of variables with high accuracy and speed which saves effort and time for researches.This study aims to develop a bank credit policy and draw an optimal credit policy in the Iraqi Islamic banking sector in general and Elaf Islamic Bank for in particular, through the use of optimal scientific methods, assuming that the distribution of available resources to alternative uses in this way leads to maximizing profits.The result obtained when applying the optimal plan were identical to the hypothesis When comparing the optimal plan with the applied plan of Elaf Islamic Bank for the year (2019). It was found that profits increased from (5.033) billion dinars to (5.6638)billion dinar with a decreased in the amount employed.One of the most important conclusions that have been reoched is that the linear Programming me the was success ful in the process of making decisions developing optimal plans allocating resources and distributing them optimally in order to maximize profits.The study concluded with a number of recomm endations the most important of which are on banks in general an Elaf Islamic Bank in particular and work to introduce various scientific methods such as linear programming and programming goals and other quantitivate methods in order to obtain optimal plans and decisions that help achieve goals.