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The Impact Of External Factors On The Decision Togrant A Loan. A Case Studz On Romanian Banks


  • Lucian Gaban

    ("1 Decembrie 1918" University of Alba Iulia)


The objective of this study is to identify external factors having a significant impacton the probability of granting a loan, and to construct a credit scoring model for small andmedium enterprises. Applying the logit analysis, we have found three external predictors whichcharacterize the firm's financial condition. These predictors are as follows: EBITDA, ROI, andCR, and they influence the decision to grant a loan. The significant non-linear effects improvethe quality and prediction power of the model. These external factors predict 85 percent, a highpercentage of correctly classified observations.

Suggested Citation

  • Lucian Gaban, 2016. "The Impact Of External Factors On The Decision Togrant A Loan. A Case Studz On Romanian Banks," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(18), pages 1-1.
  • Handle: RePEc:alu:journl:v:1:y:2016:i:18:p:1

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    the probability of granting a loan; credit scoring; logit model; non-linear effects;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors


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