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Prediction of Supply Chain Financial Credit Risk Based on PCA-GA-SVM Model

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  • Meiyan Li

    (School of Energy and Mining, Shandong University of Science and Technology, Qingdao 266590, China)

  • Yingjun Fu

    (School of Energy and Mining, Shandong University of Science and Technology, Qingdao 266590, China)

Abstract

Supply Chain Finance (SCF) is a new type of financing business carried out by commercial banks on the basis of supply chain management, which effectively promotes the healthy development of the supply chain. As the most typical mode of SCF, accounts receivable financing mode can use the part of accounts receivable occupying working capital for financing, which is widely used. In order to effectively manage the credit risk in the Supply Chain Finance and maintain the healthy operation of the supply chain, this paper proposes a supply chain financial credit risk prediction model based on PCA-GA-SVM. First, principal component analysis (PCA) is used to reduce the dimension of the original index system, and then genetic algorithm (GA) is used to optimize the parameters of support vector machine (SVM). Finally, the principal components selected by PCA are input into the GA-SVM model for training, and the final prediction model is established. The running results show that the prediction performance of PCA-GA-SVM model is better than that of SVM and GA-SVM models. It has a good generalization ability, which can be used as a reference for commercial banks to improve the credit risk management ability of Supply Chain Finance and is conducive to the sustainable development of supply chain finance business.

Suggested Citation

  • Meiyan Li & Yingjun Fu, 2022. "Prediction of Supply Chain Financial Credit Risk Based on PCA-GA-SVM Model," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16376-:d:996424
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    Keywords

    SCF; credit risk prediction; SVM; PCA; GA;
    All these keywords.

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