Direct and Indirect Impacts of Credit Scoring for Small and Medium Enterprises

2014 ◽  
Author(s):  
Dean Karlan ◽  
Sarah Craig
Keyword(s):  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Direct And Indirect Impacts ◽  
Indirect Impacts ◽  
Medium Enterprises

scholarly journals Farah Fadhilah Ansetti_130218278_KP B

2021 ◽  
Author(s):  
farah fadhilah
Keyword(s):  
Foreign Exchange ◽  
Small And Medium Enterprises ◽  
Domestic Economy ◽  
Direct Impact ◽  
Current Account Deficits ◽  
The People ◽  
Tourism Sector ◽  
Direct And Indirect Impacts ◽  
Indirect Impacts ◽  
Medium Enterprises

Indonesia’s tourism sector continues to be encouraged to become one of the major foreign exchange earner sectors and has a direct impact on the people involved in tourism activities in the hope of covering current account deficits, increasing employment, and moving Micro, Small and Medium Enterprises (MSMEs). It should be understood that the tourism sector has direct and indirect impacts on the domestic economy

scholarly journals Credit Scoring in SME Asset-Backed Securities: An Italian Case Study

2019 ◽  
Vol 12 (2) ◽  
pp. 89 ◽  
Author(s):  
Andrea Bedin ◽  
Monica Billio ◽  
Michele Costola ◽  
Loriana Pelizzon
Keyword(s):  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Bank Lending ◽  
Default Probability ◽  
Loss Distribution ◽  
Recovery Rates ◽  
Italian Case ◽  
Level Data ◽  
Asset Backed Securities ◽  
Medium Enterprises

We investigate the default probability, recovery rates and loss distribution of a portfolio of securitised loans granted to Italian small and medium enterprises (SMEs). To this end, we use loan level data information provided by the European DataWarehouse platform and employ a logistic regression to estimate the company default probability. We include loan-level default probabilities and recovery rates to estimate the loss distribution of the underlying assets. We find that bank securitised loans are less risky, compared to the average bank lending to small and medium enterprises.

LEVEL OF ACCESS TO FINANCIAL PRODUCTS AND SERVICES FOR SMALL AND MEDIUM ENTERPRISES IN KENYA.

2017 ◽  
Vol 2 (3) ◽  
pp. 31
Author(s):  
Michael Njeru Njue ◽  
Marion Mbogo
Keyword(s):  
Small Businesses ◽  
Commercial Banks ◽  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Financial Education ◽  
Target Population ◽  
Survey Study ◽  
Sampling Frame ◽  
Financial Products ◽  
Medium Enterprises

Purpose: The purpose of this study was to highlight the level of access to financial products and services for small and medium enterprises in KenyaMethodology:The research design was descriptive survey study. The target population was 46 commercial banks .The sampling frame was the list of commercial banks given at the Central bank of Kenya Website. A sample of 17 banks was selected using random sampling. The second stage of sampling involved the selection of the respondents using a stratified sampling approach. The strata were the various departments that interact with SMEs in a bank. The respondents were the head of departments of the respective departments that form the strata. Both qualitative and quantitative data was collected using a questionnaire that consisted of both open ended and close ended questions. Data was analysed using Statistical Package for Social Sciences (SPSS.Results: The study objectives were to establish the level of access to financial products and services offered by the banks to SMEs. Results from the bank manager’s perspective indicated that the level of access to finance was high, but the bank clients indicated otherwise, that it was low. The other objective of the study was to determine the factors that hinder the SMEs from accessing the financial products offered by banks. Results indicated that several factors influence access of SMEs to finance. These factors include gender, level of education, size of the business, age of the entrepreneur, collateral, and level of income for the entrepreneurs. All the factors had a negative effect on the access of finances from the banks by SMEs and hence indicate SMEs low access to financial products. Results also indicated that there are tools and systems put in place by banks to improve accessibility to financial products offered to small and medium enterprises.Unique contribution to theory, practice and policy:The study recommended that training be emphasized to SME entrepreneurs on financial matters, all gender to be treated equally, the banks to introduce financial education programs for SMEs to improve their access to credit, banks to further make use of a credit scoring system to assess the credit worthiness of small businesses and to introduce the use of new credit bureau regulations to increase SME finances.

scholarly journals Credit Scoring and Default Risk Prediction: A Comparative Study between Discriminant Analysis & Logistic Regression

2016 ◽  
Vol 8 (4) ◽  
pp. 39 ◽  
Author(s):  
Zaghdoudi Khemais ◽  
Djebali Nesrine ◽  
Mezni Mohamed
Keyword(s):  
Logistic Regression ◽  
Discriminant Analysis ◽  
Comparative Study ◽  
Risk Prediction ◽  
Commercial Bank ◽  
Default Risk ◽  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Linear Discrimination ◽  
Medium Enterprises

<p>This paper aims to develop models for foreseeing default risk of small and medium enterprises (SMEs) for one Tunisian commercial bank using two different methodologies (logistic regression and discriminant analysis). We used a database that consists of 195 credit files granted to Tunisian SMEs which are divided into five sectors “industry, agriculture, tourism, trade and services” for a period from 2012 to 2014. The empirical results that we found support the idea that these two scoring techniques have a statistically significant power in predicting default risk of enterprises. Logistic discrimination classifies enterprises correctly in their original groups with a rate of 76.7% against 76.4% in case of linear discrimination giving so a slight superiority to the first method.</p>

scholarly journals Dampak Jaminan terhadap Peluang Memperoleh Kredit bagi UMKM di Sumatera Barat

2015 ◽  
Vol 16 (1) ◽  
pp. 1-14
Author(s):  
Joan Marta ◽  
Doni Satria
Keyword(s):  
Logistic Model ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Bank Loan ◽  
Scoring Model ◽  
Collateral Effect ◽  
Medium Enterprises ◽  
Banking Credit ◽  
Credit Scoring Model

Collateral Effect to Bank Loan Probability for Microenterprises in West SumateraThis paper reveals that West Sumatera banking sector are more likely using the availability of collateral for the credit to micro, small and medium enterprises (MSME). Using 384 sample size from MSME in West Sumatera, if a MSME have enough collateral, the probability of their credit application to be rejected by banks will fall from 59.9% to 11.7% comparing to they don’t have enough collateral. This finding proved a credit guarantee scheme is needed, and for the further study it is recommended to conduct research on the characteristic of the potentials of MSME as a credit scoring model for banks.Keywords: Micro, Small and Medium Enterprises; Banking Credit; Logistic Model AbstrakPenelitian ini membuktikan bahwa perbankan di Sumatera Barat cenderung untuk menggunakan jaminan yang cukup sebagai dasar penolakan dan pemberian kredit yang diajukan Usaha Mikro Kecil dan Menengah (UMKM). Menggunakan data hasil survei dengan ukuran sampel sebanyak 384 UMKM di Sumatera Barat, penulis menemukan bahwa peluang sebuah aplikasi kredit yang diajukan UMKM ditolak akan berkurang dari 59,9% menjadi 11,7% jika UMKM tersebut memiliki jaminan yang cukup. Hasil penelitian ini merekomendasikan pentingnya sistem penjaminan kredit untuk UMKM dan sekaligus merekomendasikan untuk melakukan penelitian lanjutan untuk mengindentifikasi karakteristik UMKM yang memiliki potensi yang baik dan pembuatan model kredit scoring.

Credit scoring of small and medium enterprises: a behavioural approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akanksha Goel ◽  
Shailesh Rastogi
Keyword(s):  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Reliability And Validity ◽  
Uttar Pradesh ◽  
Indian States ◽  
Psychological Traits ◽  
Content Type ◽  
Psychological Constructs ◽  
Credit Default ◽  
Medium Enterprises

Purpose This study aims to formulate a behavioural credit scoring models for Indian small and medium enterprises (SME) entrepreneurs using certain behavioural and psychological constructs. Two separate models are built which can predict the credit default and wilful default of the borrowers, respectively. This research was undertaken to understand whether certain psychological and behavioural factors can significantly predict the borrowers’ credit and wilful default. Design/methodology/approach A questionnaire survey was undertaken by SME entrepreneurs of two Indian states, i.e. Uttar Pradesh and Maharashtra. The questionnaire had two dependent variables: wilful default and credit default and nine independent variables. The questionnaire reliability and validity were ensured through confirmatory factor analysis (CFA) and further a model was built using logistic regression. Findings The results of this study have shown that certain behavioural and psychological traits of the borrowers can significantly predict borrowers’ default. These variables can be used to predict the overall creditworthiness of SME borrowers. Practical implications The findings of this research indicate that using behavioural and psychological constructs, lending institutions can easily evaluate the credit worthiness of those borrowers, who do not have any financial and credit history. This will enhance the capability of financial institutions to evaluate opaque SME borrowers. Originality/value There are very few numbers of studies which have considered predicting the credit default using certain psychological variables, but with respect to Asian market, and especially India, there does not exist a single significant study which has tried to fulfil such research gap. Also, this is the first study that has explored whether certain psychological factors can predict the wilful default of the borrowers. This is one of the most significant contributions of this research.

scholarly journals EXPLORING ISLAMIC PEER-TO-PEER LENDING FOR THE UNBANKABLE

2020 ◽  
Vol 2 (2) ◽  
pp. 71
Author(s):  
Rizqi Umar Al-Hashfi ◽  
Alyta Shabrina Zusryn
Keyword(s):  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Peer To Peer ◽  
Financial Service ◽  
High Tech ◽  
Alternative Funding ◽  
P2p Lending ◽  
Medium Enterprises ◽  
Islamic Values

Increasing internet penetration and technology-savvy generation in Indonesia can be an opportunity for high-tech businesses. Those are driven by the significant growth in the number of borrowers and lenders at the peer-to-peer (P2P) marketplace that provides alternative funding for small and medium enterprises (SMEs). The presence of shariacompliant P2P providers offers alternatives for both borrowers and financiers who concern about Islamic values. Our work aims to discuss the role of sharia P2P lending on improving people's welfare in Indonesia. By observing 26 P2P platform providers, we conclude that the sharia P2P providers are the potential to be developed. The applications of Islamic value technological advancements, which are the prohibition of interest, transparency, and a sophisticated credit scoring system, enable the unbanked population to access financial service, especially lending. However, the sharia platforms do not offer the redemption mechanism for financiers who take their money back early. Therefore, we also propose an integrated scheme for sharia P2P platforms.

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