Scoring Models of Bank Credit Policy Management
Main Article Content
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.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:
- the right to reproduce and distribute the manuscript in printed form, including print-on-demand;
- the right to print prepublications, reprints and special editions of the manuscript;
- the right to translate the manuscript into other languages;
- the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;
- the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;
- the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;
- the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.
References
Bohaček, Z., Šarlija, N. & Benšić, M. 2008. Upotreba kredit skoring modela za ocjenjivanje kreditne sposobnosti malih poduzetnika.
Bolton, C. 2009. "Logistic regression and its application in credit scoring." PhD University Pretoria.
Sajter, D. 2009. „Pregled osnovnih metoda i istraživanja poslovnih poteškoća uz predviđanje stečaja.“ Osijek.
Šaralija, N. 2008. „Upravljanje kreditnim rizicima, Ekonomski fakultet u Osijeku“.
Šehić, S. 2009. “Menadžment rizika u standardiziranim poslovnim aktivnostima: magistarski rad”, Sarajevo.
Lando, D. 2004. Credit Risk Modeling: Theory and Applications.
Credit risk management. 2013. The GARP Risk Series http://www.garp.org (20.01.2013.).
Econ. 2013. http://www.econ.upf.edu/~bozovic/master/Rizik-7.pdf (29.01.2013.).
Baselinemag. 2013. http://www.baselinemag.com/c/a/Business-Intelligence/Bad-Credit-Could-Cost-You-A-Job-210188/ (05.02.2013.).
Bankinganalystic. 2013. http://bankinganalyticsblog.fico.com/2012/09/fico-scores-reflect-slow-economic-recovery-.html (07.02.2013.).
Antegra. 2013. http://www.antegra.com/download/antegra_sr.pdf (10.02.2013.).