Factors Affecting Price, Volume and Credit Risk in the Consumer Finance Industry: Discussion

1970 ◽  
Vol 25 (2) ◽  
pp. 526
Author(s):  
Maurice B. Goudzwaard
Keyword(s):  
Credit Risk ◽  
Consumer Finance ◽  
Factors Affecting ◽  
Finance Industry

scholarly journals Big Data Credit Report in Credit Risk Management of Consumer Finance

2021 ◽  
Vol 2021 ◽  
pp. 1-7
Author(s):  
Lu Gao ◽  
Jian Xiao
Keyword(s):  
Risk Management ◽  
Big Data ◽  
Credit Risk ◽  
Consumer Finance ◽  
Credit Risk Management ◽  
Fusion Model ◽  
Gradual Improvement ◽  
Credit Reporting ◽  
Finance Industry ◽  
Depth Analysis

Traditional consumer finance is a modern financial service method that provides consumer loans to consumers of all classes. With the gradual improvement of China’s credit reporting system, big data credit reporting has effectively made up for the lack of traditional credit reporting and has been widely used in the consumer finance industry. In this context, the in-depth analysis of the specific application of big data credit reporting in the credit risk management of consumer finance and the strengthening of the research on the application of big data credit reporting in the credit risk management of consumer finance are urgently needed to be resolved in the economic and financial theoretical and practical circles’ problem. This article mainly studies the research on credit risk management of consumer finance by big data. The experimental results of this paper show that the model has a good forecasting ability, can distinguish between normal loan customers and default loan customers, and is suitable for practical personal credit risk control business. The prediction accuracy of the default model of the fusion model is 97.14%, and the default rate corresponding to the actual business is 2.86%. By combining the risk items such as the blacklist and gray list in the Internet finance industry, the bad debt rate and illegal usury can be well controlled to meet industry supervision.

The Consumer Finance Industry: Its Costs and Regulation.

1968 ◽  
Vol 23 (1) ◽  
pp. 220
Author(s):  
Helen Hunter ◽  
John M. Chapman ◽  
Robert P. Shay
Keyword(s):  
Consumer Finance ◽  
Finance Industry

scholarly journals Determinants of Credit Risk: Evidence From Commercial Banks in Malaysia

2021 ◽  
Vol 16 (1) ◽  
pp. 134-143
Author(s):  
Noor Hafizha Muhamad Yusuf ◽  
Mohamad Shukery Mohamad Shamsudin ◽  
Wan Mohd Yaseer Mohd Abdoh ◽  
Noor Sharida Badri Shah ◽  
Rozihanim Shekh Zain
Keyword(s):  
Credit Risk ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Fe Model ◽  
Panel Regression ◽  
Return On Equity ◽  
Factors Affecting ◽  
Independent Variables ◽  
Interest Income ◽  
The Relationship

The purpose of this study is to determine the relationship between microeconomic factors with credit risk among selected commercial banks in Malaysia. For this purpose, a sample of seven out of 27 commercial banks in Malaysia was selected and the microeconomic factors affecting credit risk with six measurements of return on asset (ROA), bank size, leverage, the ratio of capital, interest income and return on equity (ROE) were examined by applying Panel Regression Fixed Effect (FE) Model for a period 20 years from 1998 to 2017. The scope of the study covers seven selected commercial banks in Malaysia namely: Affin Bank Berhad, Alliance Bank Malaysia Berhad, CIMB Bank Berhad, Hong Leong Bank Berhad, Malayan Banking Berhad, Public Bank Berhad and RHB Bank Berhad. This study is using credit risk proxy by non-performing loan for dependent variable while independent variables that have been selected were returned on asset (ROA), bank size, leverage, the ratio of capital, interest income and return on equity (ROE). The findings of the study managed to reject the null hypothesis for return on asset, bank size, leverage, interest income and return on equity which indicates the five microeconomic variables give a significant relationship with credit risk. There are positive relationships between leverage, interest income and return on equity with credit risk while return on asset, bank size and ratio of capital are negatively related to credit risk. However, the study fails to find any significant relationship between the ratio of capital and credit risk for commercial banks in Malaysia.

scholarly journals A Longitudinal Systematic Review of Credit Risk Assessment and Credit Default Predictors

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110613
Author(s):  
Büşra Alma Çallı ◽  
Erman Coşkun
Keyword(s):  
Systematic Review ◽  
Risk Assessment ◽  
Credit Risk ◽  
Financial Behavior ◽  
Outcome Variable ◽  
Factors Affecting ◽  
Credit Risk Assessment ◽  
Wide Range ◽  
Credit Default ◽  
Outcome Domain

This study aims to reveal the predictors of individuals’ financial behavior associated with credit default for accurate and reliable credit risk assessment. Within the scope of credit use research, a systematic review of 108 studies was performed. Among the reviewed studies, a fair number have analyzed the determinants of default and delinquency. A remarkable number has examined the factors affecting outstanding and problematic debt levels, and some have investigated the financial behavior in terms of responsibility, debt repayment, and credit misuse. A wide range of socioeconomic, demographic, psychological, situational, and behavioral factors was explored, and their role in predicting the investigated outcome domain at various time-points was analyzed. The main analysis techniques and mix of predictors in papers also differed based on different time periods. While the synthesis of findings revealed some strong and consistent predictors for each outcome variable, mixed results were obtained for some factors. Additionally, a cluster of new practices that includes a wide range of alternative factors to improve prediction accuracies were uncovered. Study findings revealed a paradigm shift regarding the use of non-traditional data sources, especially big data, and novel techniques.

scholarly journals Theoretical Framework for Research on the Factors Affecting the Moral Hazard in Banking Operation

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Ngo Thanh Xuan ◽  
◽  
Do Hoai Linh ◽  
Khuc The Anh ◽  
Nguyen Khoa Duc Anh
Keyword(s):  
Moral Hazard ◽  
Credit Risk ◽  
Banking System ◽  
Operational Risk ◽  
Theoretical Framework ◽  
Ethical Conduct ◽  
Factors Affecting ◽  
Banking Operations

There are many types of risks related to banking operations such as credit risk, interest risk, operational risk. Problems related to moral hazard have led to considerable setbacks for the economy in general and banking system in particular. Besides, moral hazard is an economic and financial terminology and is used to denote the risk generated from the deterioration in ethical conduct. Hence, authors aim at reviewing theoretical framework for determinants impacting moral hazard in banks.

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