scholarly journals Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Yufeng Mao ◽  
Zongrun Wang ◽  
Xing Li ◽  
Chenggang Li ◽  
Hanning Wang
Keyword(s):  
Neural Network ◽  
Credit Risk ◽  
Early Phase ◽  
Small And Medium Enterprises ◽  
Low Cost ◽  
Late Phase ◽  
Credit Risk Management ◽  
Risk Rating ◽  
Medium Enterprises ◽  
Rating Model

The low-cost, highly efficient online finance credit provides underfunded individuals and small and medium enterprises (SMEs) with an indispensable credit channel. Most of the previous studies focus on the client crediting and screening of online finance. Few have studied the risk rating under a complete credit risk management system. This paper introduces the improved neural network technology to the credit risk rating of online finance. Firstly, the study period was divided into the early phase and late phase after the launch of an online finance credit product. In the early phase, there are few manually labeled samples and many unlabeled samples. Therefore, a cold start method was designed for the credit risk rating of online finance, and the similarity and abnormality of credit default were calculated. In the late phase, there are few unlabeled samples. Hence, the backpropagation neural network (BPNN) was improved for online finance credit risk rating. Our strategy was proved valid through experiments.

scholarly journals Feasibility Study of Credit Risk Rating Systems in Banks

2017 ◽  
Vol 6 (12) ◽  
pp. 294-306
Author(s):  
Lakshmi P
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Credit Risk Management ◽  
Credit Policy ◽  
Rating Systems ◽  
Public And Private ◽  
Risk Rating ◽  
Private Banks ◽  
Rating Model

Credit risk rating is an important tool used by banks to quantify risk associated with lending. Accuracy of the rating mechanism is an important aspect as it affects the nature and quality of credit decisions made. A wrong rating may affect not only the sustainability and goodwill of the banks; it can even affect the overall economic harmony and balance, as banks are barometers of the economy. Recent global economic crisis of 2008, itself showcases a need for very strict and accurate credit policy. Under this back drop, present study aims to analyze the credit risk rating mechanism of banks. A comparative study of the different risk rating models adopted by public and private banks in Thiruvananthapuram district (Kerala, India) is made and study attempts to determine the lacuna in the present risk rating model, if any. The study aims to provide suggestions to improve the credit risk management of banks.

scholarly journals Size and profitability in cooperative banking: a picture from inside a Portuguese institution

2019 ◽  
pp. 201
Author(s):  
Sérgio Lagoa ◽  
Licínio Prata Pina
Keyword(s):  
Credit Risk ◽  
Small And Medium Enterprises ◽  
Medium Size ◽  
Subprime Crisis ◽  
Specific Time ◽  
Credit Risk Management ◽  
Invariant Features ◽  
Medium Enterprises ◽  
Time Invariant ◽  
The Impact

The European co-operative banks play an important role in promoting savings and in financing small and medium enterprises. Their distinctive characteristics have allowed them to get through the Subprime crisis with remarkable resilience. Nevertheless, co-operative banks operate in a very competitive market, where they are constantly under pressure to improve their position. Increasing the size of local co-operative banks is often the strategy used to deal with this pressure. Based on data from a Portuguese co-operative banking group for 2009-11, we assess the impact of size on assets profitability, and conduct a disaggregated analysis of the ratios affecting it. Results indicate that size has an insignificant effect on profitability after controlling for the time-invariant characteristics of each local bank (i.e. caixa). This suggests that the initial higher profitability identified in small and larger caixas vis-à-vis that of medium-size caixas was explained by their specific time-invariant features. However our evidence suggests that size has an indirect effect on return through credit risk: larger caixas have better credit risk management.

Thermal characterisation analysis and modelling techniques for CubeSat-sized spacecrafts

2017 ◽  
Vol 121 (1246) ◽  
pp. 1858-1878
Author(s):  
Anwar Ali ◽  
Khalil Ullah ◽  
Hafeez Ur Rehman ◽  
Inam Bari ◽  
Leonardo M. Reyneri
Keyword(s):  
Thermal Resistance ◽  
Heat Dissipation ◽  
Small And Medium Enterprises ◽  
Low Cost ◽  
Detailed Model ◽  
Small Surface ◽  
Short Development Time ◽  
Similar Materials ◽  
Absorbed Power ◽  
Medium Enterprises

ABSTRACTRecently, universities and Small and Medium Enterprises (SMEs) have initiated the development of nanosatellites because of their low cost, small size and short development time. The challenging aspects for these satellites are their small surface area for heat dissipation due to their limited size. There is not enough space for mounting radiators for heat dissipation. As a result, thermal modelling becomes a very important element in designing a small satellite. The paper presents detailed and simplified generic thermal models for CubeSat panels and also for the complete satellite. The detailed model takes all thermal resistances associated with the respective layers into account, while in the simplified model, the layers with similar materials have been combined and are represented by a single thermal resistance. The proposed models are then applied to a CubeSat standard nanosatellite called AraMiS-C1, developed at Politecnico di Torino, Italy. Thermal resistance measured through both models is compared, and the results are similar. The absorbed power and the corresponding temperature differences between different points of the single panel and complete satellite are measured. In order to verify the theoretical results, thermal resistance of the AraMiS-C1 and its panels are measured through experimental set-ups. Theoretical and measured values are in close agreement.

A Confidence-Based RBF Neural Network Ensemble Learning Paradigm with Application to Delinquent Prediction for Credit Risk Management

2010 ◽  
pp. 105-117
Author(s):  
Lean Yu ◽  
Shouyang Wang
Keyword(s):  
Neural Network ◽  
Risk Management ◽  
Credit Risk ◽  
Ensemble Learning ◽  
Rbf Neural Network ◽  
Network Models ◽  
Neural Network Ensemble ◽  
Credit Risk Management ◽  
Learning Paradigm ◽  
Neural Network Models

In this study, a multistage confidence-based radial basis function (RBF) neural network ensemble learning model is proposed to design a reliable delinquent prediction system for credit risk management. In the first stage, a bagging sampling approach is used to generate different training datasets. In the second stage, the RBF neural network models are trained using various training datasets from the previous stage. In the third stage, the trained RBF neural network models are applied to the testing dataset and some prediction results and confidence values can be obtained. In the fourth stage, the confidence values are scaled into a unit interval by logistic transformation. In the final stage, the multiple different RBF neural network models are fused to obtain the final prediction results by means of confidence measure. For illustration purpose, two publicly available credit datasets are used to verify the effectiveness of the proposed confidence-based RBF neural network ensemble learning paradigm.

scholarly journals The bank approach to a credit obligor – a farm business – in the context of credit risk and capital adequacy

2012 ◽  
Vol 48 (No. 9) ◽  
pp. 395-398
Author(s):  
H. Sůvová
Keyword(s):  
Credit Risk ◽  
Small And Medium Enterprises ◽  
Capital Adequacy ◽  
Financial Risks ◽  
Agricultural Enterprises ◽  
Bank Management ◽  
New Basel Capital Accord ◽  
Bank For International Settlements ◽  
Medium Enterprises ◽  
Farm Business

The objective of this paper is to enable a bank’s view towards a credit obligor. Banks are subject to a lot of financial risks. Credit risk is the most important one. Banks also have to manage the objective of maximum profit on one hand, the prudential rules on the other hand. Recently, the Bank for International Settlements submitted a new concept of prudential rules (The New Basel Capital Accord) that should be accepted by national regulators and applied from 2006/7. This concept brings relatively strict conditions which should improve bank management of credit risk but which are unpleasant for loaning of small and medium enterprises including agricultural ones that are mostly part of this category. Very important role will be still played by non-market supporting instruments, especially guarantees provided by sovereigns. They can improve the competitiveness of agricultural enterprises in the credit market.

BIG TECH BANKING

2018 ◽  
Vol 14 (4) ◽  
pp. 494-526 ◽  
Author(s):  
Miguel de la Mano ◽  
Jorge Padilla
Keyword(s):  
Financial Stability ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Low Cost ◽  
Consumer Welfare ◽  
Retail Banking ◽  
Policy Makers ◽  
Medium Enterprises ◽  
New Industry

Abstract In this paper we explore the likely implications of the entry of Big Tech platforms into retail banking and the appropriate response of regulators and policy makers to this new industry development. We find that the entry of Big Tech platforms may transform the banking industry in radical ways: although it may possibly increase competition to the benefit of consumers in the short term, within a few years Big Tech companies may succeed in monopolizing the origination and distribution of loans to consumers and Small and Medium Enterprises (SMEs), forcing traditional banks to become “low cost manufacturers,” which merely fund the loans intermediated by the Big Techs. This situation may harm competition, reduce consumer welfare, and bring about an increase in financial instability in the medium or long term. We analyze alternative policy responses aimed at maximizing the positive impact on consumer welfare of Big Tech entry while limiting the risk of monopolization as well as the potential adverse implications of such entry on market integrity and financial stability.

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