Work

Scoring Models of Bank Credit Policy Management

Year: 2013

Type: article

Abstract: The aim of this paper is to present how credit scoring models can be used in financial institutions, in this case in banks, in order to simplify credit lending. Unlike traditional models of credit analysis, scoring models provides valuation based on numerical score who represent clients’ possibility to fulfil their obligation. Using credit scoring models, bank can create a numerical snapshot of consumers risk profile. One of the most important characteristic of scoring models is objectivity where two clients with the same characteristics will have the same credit rating. This paper presents some of credit scoring models and the way that financial institutions use them.

Source: IRIES institutional repository of scientific publications of Institute of Economic Sciences (Institute of Economic Sciences, Belgrade)

Authors: Aida Hanić, Emina Žunić, Adnan Dželihodžić

Institutions: Institute of Economic Sciences, International Burch University

Language: English

Topic: Financial Distress and Bankruptcy Prediction

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W53287480

FWCI:

Cites:

Cited by: 5

Related to: 10