ZIP Code Versus Georeference

When dealing with predictive modeling of credit-granting, different types of attributes are used: Cadastral, Behavioral, Business / Proposal, Credit Bureaux, in addition to Public, Private or Subsidiaries Sources. The Postal Address Code (Código de Endereçamento Postal CEP in Portuguese) in Brazil, in particular, has a unique contribution capacity (uncorrelated with most other attributes in general) and reasonably good predictive power. CEP is frequently used by truncating its numeric representation, considering the first d digits, for example. In this report, a preliminary methodology is proposed, aiming to elaborate clustering sets of CEPs by considering the information of clients' defaults over a period of time. Additionally, we tested the number of clusters obtained using the Information Value criterion. Promising solutions are obtained using statistical and optimizing approaches. Other methodologies are suggested and could be complementary with the principal methodology proposed.

PERBANDINGAN ALGORITMA K-NEAREST NEIGHBOR, DECISION TREE, DAN NAIVE BAYES UNTUK MENENTUKAN KELAYAKAN PEMBERIAN KREDIT

The banking world in terms of providing credit to customers is a regular activity that has a large effect. In its application, non-performing loans or bad loans are often created due to poor credit analysis in the credit granting process, or from bad customers. The purpose of this study is to compare the results of algorithm accuracy between K-Nearest Neighbor (K-NN), Decision Tree, and Naive Bayes which results in the best accuracy will be implemented to determine creditworthiness. The attributes used in this study consisted of 11 attributes, namely marital status, number of dependents, age, last education, occupation, monthly income, home ownership, collateral, loan amount, length of loan and information as result attributes. The methods used in this research are K-Nearest Neighbor, Decision Tree, and Naive Bayes. From the results of evaluation and validation using k-5 fold that has been carried out using RapidMiner tools, the highest accuracy results from a comparison of 3 algorithms is using a decision tree (C4.5) of 98% in the 3rd test.

Penilaian Pemberian Kredit Untuk Meminimalisir Resiko Kredit Pada Bank BRI Unit Tampan Kota Pekanbaru

This study aims to determine the effect of applying the 5C principle in the assessment of credit disbursement to minimize credit risk at the handsome Unit BRI Bank Pekanbaru City. Data collection was carried out by distributing questionnaires to the handsome unit BRI financing department as many as 8 respondents. This research uses descriptive quantitative method with Accidental Sampling sampling technique. The data obtained were then processed using the tools of IBM SPSS Statistics 26. The results of this study show that the Handsome Unit of the BRI Bank applies the 5C principle well in the assessment of credit granting efforts to minimize credit risk.

RESEARCH OF THE EFFICIENCY OF LITHUANIAN BANKS CREDIT GRANTING PROCESS

Purpose – to evaluate the efficiency of the credit provision process of Lithuanian banks, to submit suggestions for improvement. Research methodology – after the theoretical analysis of the efficiency of the credit granting process was developed, an empirical research using the methods of questionnaire survey and analysis of financial indicators was carried out. Findings – efficiency is usually lost at the stages of consideration of application, conclusion of credit portfolio and risk assessment. These factors were distinguished from all efficiency reducing factors: time consuming processes, not automatized stages, insufficiently informed customer. Research limitations – methods of analysis of scientific literature are limited, but they enable the analysis and identifi- cation of the efficiency of credit provision within the research. Practical implications – the article evaluates the efficiency of credit provision by selected banks and proposes measures to streamline the process. By applying the proposed measures, banks could increase the efficiency of the credit granting process. Originality/Value – previously, the effectiveness of credit granting process in Lithuanian banks has not been assessed.

Electronic Credit and Furniture Decision Support Systems Using the Weighted Product Method

To do Electronic Credit and furniture is quite difficult and less effective and efficient. Because the system used is still manual or not computerized, and the number of consumers who want to credit goods in Metro, it takes a few days or a long time to make a decision so that a system is needed, namely a Decision Support System using the Weighted Product method. The Weighted Product method is a method that uses multiplication to relate the attribute rating, where the rating of each attribute must first be ranked with the attribute's weight. The Weighted Product method uses multiplication as a liaison for attribute ratings, where the rating of each attribute must be ranked first with the weight in question. This research will produce an application or a furniture and electronic credit decision support system that can help make the credit granting process in the metro easier and more precise. The criteria used in this study are income, BPKB guarantee, KTP, family card (KK), home status, tutoring concerned and child dependents. Of the 5 examples of consumers who have been given in this study from A1, A2, A3, A4, to A5 then the highest ranking result of these 5 consumers is given to alternative A1 because the value obtained by A1 is higher than other alternatives. This system is designed using UML with the programming language PHP, CSS, Java script and HTML with the MySQL database.

Metode SAW dalam Penentuan Pemberian Kredit Calon Konsumen pada PT. Interyasa Mitra Mandiri

PT. Interyasa Mitra Mandiri Kisaran is a company whose products are engaged in trade that sells electronics and furniture in cash or credit. Granting crdit can provide relief to consumers, giving rise to the level of consumer interest in buying, which means the company’s sales turnover is higher and the company’s cash receipts will increase. Determining which consumers deserve credit is not easy. Companies need a Decision Support System (DSS) that can help determine the creditwhorthiness of potential customers. The decision making calculation method used in this study is a simple additive weighting method with 5 criteria, namely discipline, down payment, monthly income, credit guarantee, and residence of status. The system was built using the PHP MySQL language and Sublime Text as the programming code. And the object-oriented system modeling language used is UML (Unifed Modelling Language). By using this SAW Method, it is hoped that the final result will be obtained as a tool to determine the credit extension to potential consumers who are eligible to be given. Keywords :Credit, DSS, Simple Additive Weighting (SAW), UML. Abstrak :PT. Interyasa Mitra Mandiri Kisaran merupakan perusahaan yang produknya bergerak di bidang perdagangan yang menjual barang elektronik dan furniture secara cash maupun kredit. Pemberian kredit dapat memberikan keringanan kepada konsumen, sehingga menimbulkan besarnya minat konsumen untuk membeli, yang berarti omset penjualan perusahaan menjadi lebih tinggi dan penerimaan kas perusahaan akan meningkat. Menentukan konsumen yang layak diberikan kredit bukanlah hal yang mudah.Perusahaan membutuhkan sebuah Sistem Pendukung Keputusan (SPK) yang dapat membantu dalam menentukan kelayakan pemberian kredit untuk calon konsumen. Metode perhitungan pengambilan keputusan yang digunakan pada penelitian ini adalah Metode Simple Additive Weighting (SAW) dengan 5 kriteria yaitu kedisiplinan, uang muka, penghasilan perbulan, jaminan kredit dan status tempat tinggal. Sistem ini dibangun menggunakan bahasa PHP MySQL dan Sublime Text sebagai koding pemrogramannya.Serta bahasa pemodelan sistem berorientasi objek yang digunakan adalah UML (Unifed Modelling Language). Dengan menggunakan metode SAW ini, diharapkan mendapatkan hasil akhir sebagai alat bantu untuk menentukan pemberian kredit kepada calon konsumen yang layak diberikan. Kata Kunci :Kredit, SPK, Simple Additive Weighting (SAW), UML.

The Relationship between the Criteria for Granting Bank Credit and the Quality of the Audited Financial Statements: A Field Study in Traditional Banks in the Republic of Yemen

This study aimed at investigating the relationship between the criteria for granting bank credit and the quality of the audited financial statements by conducting a field study in traditional banks in the Republic of Yemen. In order to achieve this objective, a questionnaire was used for collecting data from the study population consisted of (9) traditional banks. The complete census sampling method was used for the sample of (119) employees. The actual no. of questionnaires, valid for analysis, was 104. The data were processed and analyzed using SPSS. The results of the study revealed that there is a statistically significant positive correlation between the criteria of granting credit (related to customer, bank and credit) and the quality of the audited financial statements. The study recommends that the quality of audited financial statements should be enhanced and their role should be activated in decision making. Keywords: traditional banks, Republic of Yemen, quality of audited financial statements, credit granting criteria.

“Sorry, We're Closed” Bank Branch Closures, Loan Pricing, and Information Asymmetries*

We study local loan conditions when banks close branches. In places where branch closures do not take place, firms that purposely switch banks receive a sixty-three basis points (bps) discount. However, after the closure of nearby branches of their credit-granting banks, firms that locally and hurriedly transfer to other banks receive no such discount. Yet, the loan default rate for the latter (more expensive) transfer loans is on average a full percentage point lower than that for the former (cheaper) switching loans. This suggests that transfer firms are of “better” quality than switching firms. In sum, even if local markets remain competitive, when banks close branches, firms lose.