The present study investigates the impact of interest rate unification on the supply of bank’s credit to the agricultural sector through developing an asset-liability management mathematical model, and employing data from Bank Keshavarzi of Iran has been investigated in the present study. Results indicate that setting a unified 16 percent interest rate for all credits allocated to different economic sectors results in an increase of 9.1 percent in the share dedicated to agricultural sector from the total supply of Bank’s credits, while reducing the bank’s profit by 10.9 percent. To offset the profit loss, different possible alternatives were investigated among which the issuance of certificate of deposits (CD) option and paying special credit from this financial resource appeared to be the most suitable policy and option.
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