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Volume 56, Issue 3 -4


Credit-Scoring Methods (in English)

Kočenda, Evžen; Vojtek, Martin

Year: 2006   Volume: 56   Issue: 3 -4   Pages: 152-167

Abstract: The paper reviews the best-developed and most frequently applied methods of credit scoring employed by commercial banks when evaluating loan applications. The authors concentrate on retail loans ? applied research in this segment is limited, though there has been a sharp increase in the volume of loans to retail clients in recent years. Logit analysis is identified as the most frequent credit-scoring method used by banks. However, other nonparametric methods are widespread in terms of pattern recognition. The methods reviewed have potential for application in post-transition countries.

JEL classification: B41, C14, D81, G21, P43

Keywords: banking sector; credit scoring; discrimination analysis; pattern recognition; retail loans


RePEc: http://ideas.repec.org/a/fau/fauart/v56y2006i3-4p152-167.html

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