Customers' Credit Risk Evaluation Using LINMAP Analysis (A Case Study on an Iranian Commercial Bank)

Subject Areas : Labor and Demographic Economics

Seyed Ali Naji Esfahani ¹ , Mohammad Ali Rastegar ²

1 - دانشجوی کارشناسی ارشد دانشگاه خوارزمی
2 - Industrial & Systems Engineering

Received: 2019-03-11 Accepted : 2019-03-11 Published : 2019-02-20

Keywords: LINMAP, C15, JEL Classification: G32, G21. Keywords: Credit Risk, Commercial Bank,

Abstract :

Abstract The aim of this paper is evaluation and forecasting of credit risk of the companies that were applied for a loan in a commercial bank in Iran. So, by using cross-section random sampling by having 75% of total data as an in-sample and 25% as out-sample and also by using LINMAP model, financial statements and their performance in the bank were investigated during 1389-1393. The results indicate the efficiency of the method for forecasting credit behavior of the bank's customers. Considering the method advantages including its independence to the companies' financial background and precision in forecasting relative to prevailing methods, it is recommended to use this method as input to researches for banks' credit portfolio management.   

References:

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