IDEAS home Printed from https://ideas.repec.org/a/ibg/eajour/v46y2013i1-2p12-27.html
   My bibliography  Save this article

Scoring Models of Bank Credit Policy Management

Author

Listed:
  • Aida Hanic

    (Institute of Economic Sciences, Belgrade, Serbias)

  • Emina Zunic

    (International Burch University, Sarajevo)

  • Adnan Dzelihodzic

    (International Burch University, Sarajevo)

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

Suggested Citation

  • Aida Hanic & Emina Zunic & Adnan Dzelihodzic, 2013. "Scoring Models of Bank Credit Policy Management," Economic Analysis, Institute of Economic Sciences, vol. 46(1-2), pages 12-27.
    • Handle: RePEc:ibg:eajour:v:46:y:2013:i:1-2:p:12-27
    as

    Download full text from publisher

    File URL: http://www.ien.bg.ac.rs/index.php/en/2013/2013-1-2
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Credit scoring; score; probability; risk; financial institutions;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibg:eajour:v:46:y:2013:i:1-2:p:12-27. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zorica Bozic (email available below). General contact details of provider: https://edirc.repec.org/data/ienbgyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.