Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets

Kazi Rashedul Hasan

doi:doi:10.11648/j.ijber.20160505.11

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Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets

Kazi Rashedul Hasan

Published in International Journal of Business and Economics Research (Volume 5, Issue 5)

Received: 27 June 2016 Accepted: 5 July 2016 Published: 10 August 2016

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Abstract

The primary focus of this paper is to develop a retail credit scoring model specifically suitable for financial institutions from emerging economies, where availability of reliable data is scarce. In addition, the study seeks to illustrate the efficacy of such credit scoring models and emphasize improvements that can be achieved in the decision-making function of consumer credit granting process.

Published in	International Journal of Business and Economics Research (Volume 5, Issue 5)
DOI	10.11648/j.ijber.20160505.11
Page(s)	135-142
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Credit Scoring Model, Logistic Regression, Credit Risk Assessment, Risk Management, Financial Institutions, Frontier Markets

References

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[2]	Altman, E. (1977). ZETA analysis: a new model to identify bankruptcy risk of corporations. Jmynal of Banking and Finance, Vol. 1, 29-54.
[3]	Merton, R. (1974). On the Pricing of Corporate Debt: The Risk Structure of Interest Rates. Jmynal of Finance, Vol. 29, No. 2, 449-470.
[4]	Cox, J. Black, F. (1976). Valuing corporate securities: Some effects of bond indenture provisions. Jmynal of Finance Vol. 31, 351–367.
[5]	Hayes, K., Hodge, K., Hughes, L., (2010). A Study of the Efficacy of Altman’s Z To Predict Bankruptcy of Specialty Retail Firms Doing Business in Contemporary Times. Economics & Business Jmynal, Inquiries & Perspectives Vol. 1, 122-130.
[6]	Miller, W. (2009). Comparing Models of Corporate Bankruptcy Prediction: Distance to Default vs. Z-Score. Chicago: Morningstar, Inc.
[7]	Altman, E., H. M. (2002). Revisiting Credit Scoring Models in a Basel 2 Environment. In Ong. M., Credit Rating: Methodologies, Rationale and Default Risk. London: London Risk Books.
[8]	Handm, D. (2001). Modelling consumer credit risk. IMA Jmynal of Management Mathematics Vol 12, 139-155.
[9]	Allen, L., DeLong, G., Saunders, A. (2004). Issues in the credit risk modeling of retail markets. Jmynal of Banking and Finance, Vol. 28, 727-752.
[10]	Bartolozzi, E., Garcıa-Erguın, L., Deocon, C., Vasquez, O., Plaza, F. (2008). Credit Scoring Modelling for Retail Banking Sector. Madrid: Universidad Complutense de Madrid.
[11]	Schaeffer Jr, H. (2000). Credit Risk Management: A Guide to Sound Business Decisions. Wiley.
[12]	Saunders, A., C. M. (2010). Financial Institutions Management, Risk Management Approach. McGraw-Hill/Irwin.
[13]	Martin, V., Evien, K. (2011). Credit Scoring Methods. Jmynal of Economic Literature.
[14]	Pohar, M., Blas, M., Turk, S. (2004). Comparison of Logistic Regression and Linear Discriminant Analysis: A Simulation Study. Metodološki zvezki, Vol. 1, 143-161.
[15]	Ibster, G. (2011). Bayesian Logistic Regression Models for Credit Scoring. Rhodes University.
[16]	Berry M., Linoff. G. (2000). Mastering Data Mining: The Art and Science of Customer Relationship Management. New York: John Wiley & Sons, Inc.
[17]	Siddiqi N. (2006). Credit Risk Scorecards. New Jersey: John Wiley & Sons, Inc.

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APA Style

Kazi Rashedul Hasan. (2016). Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets. International Journal of Business and Economics Research, 5(5), 135-142. https://doi.org/10.11648/j.ijber.20160505.11

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ACS Style

Kazi Rashedul Hasan. Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets. Int. J. Bus. Econ. Res. 2016, 5(5), 135-142. doi: 10.11648/j.ijber.20160505.11

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AMA Style

Kazi Rashedul Hasan. Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets. Int J Bus Econ Res. 2016;5(5):135-142. doi: 10.11648/j.ijber.20160505.11

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@article{10.11648/j.ijber.20160505.11,
  author = {Kazi Rashedul Hasan},
  title = {Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets},
  journal = {International Journal of Business and Economics Research},
  volume = {5},
  number = {5},
  pages = {135-142},
  doi = {10.11648/j.ijber.20160505.11},
  url = {https://doi.org/10.11648/j.ijber.20160505.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20160505.11},
  abstract = {The primary focus of this paper is to develop a retail credit scoring model specifically suitable for financial institutions from emerging economies, where availability of reliable data is scarce. In addition, the study seeks to illustrate the efficacy of such credit scoring models and emphasize improvements that can be achieved in the decision-making function of consumer credit granting process.},
 year = {2016}
}

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TY  - JOUR
T1  - Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets
AU  - Kazi Rashedul Hasan
Y1  - 2016/08/10
PY  - 2016
N1  - https://doi.org/10.11648/j.ijber.20160505.11
DO  - 10.11648/j.ijber.20160505.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 135
EP  - 142
PB  - Science Publishing Group
SN  - 2328-756X
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AB  - The primary focus of this paper is to develop a retail credit scoring model specifically suitable for financial institutions from emerging economies, where availability of reliable data is scarce. In addition, the study seeks to illustrate the efficacy of such credit scoring models and emphasize improvements that can be achieved in the decision-making function of consumer credit granting process.
VL  - 5
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Author Information

Kazi Rashedul Hasan

Department of Finance, American International University-Bangladesh (AIUB), Dhaka, Bangladesh

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Plain Text BibTeX RIS

APA Style

Kazi Rashedul Hasan. (2016). Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets. International Journal of Business and Economics Research, 5(5), 135-142. https://doi.org/10.11648/j.ijber.20160505.11

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ACS Style

Kazi Rashedul Hasan. Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets. Int. J. Bus. Econ. Res. 2016, 5(5), 135-142. doi: 10.11648/j.ijber.20160505.11

Copy | Download

AMA Style

Kazi Rashedul Hasan. Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets. Int J Bus Econ Res. 2016;5(5):135-142. doi: 10.11648/j.ijber.20160505.11

Copy | Download

@article{10.11648/j.ijber.20160505.11,
  author = {Kazi Rashedul Hasan},
  title = {Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets},
  journal = {International Journal of Business and Economics Research},
  volume = {5},
  number = {5},
  pages = {135-142},
  doi = {10.11648/j.ijber.20160505.11},
  url = {https://doi.org/10.11648/j.ijber.20160505.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20160505.11},
  abstract = {The primary focus of this paper is to develop a retail credit scoring model specifically suitable for financial institutions from emerging economies, where availability of reliable data is scarce. In addition, the study seeks to illustrate the efficacy of such credit scoring models and emphasize improvements that can be achieved in the decision-making function of consumer credit granting process.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Development of a Credit Scoring Model for Retail Loan Granting Financial Institutions from Frontier Markets
AU  - Kazi Rashedul Hasan
Y1  - 2016/08/10
PY  - 2016
N1  - https://doi.org/10.11648/j.ijber.20160505.11
DO  - 10.11648/j.ijber.20160505.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 135
EP  - 142
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20160505.11
AB  - The primary focus of this paper is to develop a retail credit scoring model specifically suitable for financial institutions from emerging economies, where availability of reliable data is scarce. In addition, the study seeks to illustrate the efficacy of such credit scoring models and emphasize improvements that can be achieved in the decision-making function of consumer credit granting process.
VL  - 5
IS  - 5
ER  -

Copy | Download