Validate Scoring of Legal Borrowers in Banks (Using Logit and Probit Models)
Defaulted loans are biggest challenges in Iranian bank system. One of the major reasons for this phenomenon is the lack of validate scoring systems for loan payment in the banks. The banks can predict default risks of the borrowers, by using these systems. However, a data base has been established f...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2012-03-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_963_3cba0b23f2c312eca10cdc05894076df.pdf |
| Summary: | Defaulted loans are biggest challenges in Iranian bank system. One of the major reasons for this phenomenon is the lack of validate scoring systems for loan payment in the banks. The banks can predict default risks of the borrowers, by using these systems.
However, a data base has been established for gathering borrowers' information and providing validates reports in previous years, but, there are defects to use these reports in the bank system comprehensively.
This research aims to design a practical validate scoring model.
We have used the information 290 legal (small and medium size) borrowers in three banks. The results show the suggested model is significant. In addition, the model was tested on the basis the information of another sample of 40 legal borrowers; the results confirmed the before ones. |
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| ISSN: | 1735-210X 2476-6453 |