A combined conceptual, theoretical and empirical review of credit-scoring models
Abstract
This chapter reviews credit-scoring models as quantitative tools used by lenders to evaluate credit risk. It provides a wide-ranging review of existing and novel parametric and nonparametric techniques used in credit score modeling. It also contains a comprehensive survey of empirical work in the literature on credit-scoring models from 1992 to 2006. The main purpose of the chapter is to facilitate the selection of the variables and techniques used in constructing credit-scoring models by industry practitioners and academic researchers.This chapter reviews credit-scoring models as quantitative tools used by lenders to evaluate credit risk. It provides a wide-ranging review of existing and novel parametric and nonparametric techniques used in credit score modeling. It also contains a comprehensive survey of empirical work in the literature on credit-scoring models from 1992 to 2006. The main purpose of the chapter is to facilitate the selection of the variables and techniques used in constructing credit-scoring models by industry practitioners and academic researchers.
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Book Title
Economic and Financial Modelling of Markets, Institutions and Instruments
Publisher URI
Subject
Finance