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Academic Journal of Business & Management, 2021, 3(5); doi: 10.25236/AJBM.2021.030505.

Comprehensive Study of Small Micro-Enterprise Credit Risk Quantification and Credit Decisions

Author(s)

Xiaoxiao Zhan1, Xueyan Li1, Wendong Su2

Corresponding Author:
Xiaoxiao Zhan
Affiliation(s)

1Faculty of Statistics and Applied Mathematics, Anhui University of Finance and Economics

2School of international trade and economics, Anhui University of Finance and Economics, Anhui, Bengbu, 233000

Abstract

In order to solve the problem of bank credit risk quantification and credit alloca-tion strategy for small, medium and micro enterprises, This paper deals with the data indicators of 123 enterprises with credit records, Logistic regression model and RAROC (risk-adjusted return) model are used comprehensively, the default probability of an enterprise is obtained as the quantitative result of credit risk, and according to the risk quantification results to develop credit strategy. Finally, comprehensive consideration of a variety of emergent factors on the different impact of enterprises, and make adjustments to your credit strategy.

Keywords

Credit risk quantification; Credit strategy; Logistic; RAROC

Cite This Paper

Xiaoxiao Zhan, Xueyan Li, Wendong Su. Comprehensive Study of Small Micro-Enterprise Credit Risk Quantification and Credit Decisions. Academic Journal of Business & Management (2021) Vol. 3, Issue 5: 28-34. https://doi.org/10.25236/AJBM.2021.030505.

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