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Shorouq Fathi Eletter - One of the best experts on this subject based on the ideXlab platform.
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credit risk assessment model for jordanian Commercial Banks neural scoring approach
Review of Development Finance, 2014Co-Authors: Hussain Ali Bekhet, Shorouq Fathi EletterAbstract:Despite the increase in the number of non-performing loans and competition in the banking market, most of the Jordanian Commercial Banks are reluctant to use data mining tools to support credit decisions. Artificial neural networks represent a new family of statistical techniques and promising data mining tools that have been used successfully in classification problems in many domains. This paper proposes two credit scoring models using data mining techniques to support loan decisions for the Jordanian Commercial Banks. Loan application evaluation would improve credit decision effectiveness and control loan office tasks, as well as save analysis time and cost. Both accepted and rejected loan applications, from different Jordanian Commercial Banks, were used to build the credit scoring models. The results indicate that the logistic regression model performed slightly better than the radial basis function model in terms of the overall accuracy rate. However, the radial basis function was superior in identifying those customers who may default.
Hussain Ali Bekhet - One of the best experts on this subject based on the ideXlab platform.
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credit risk assessment model for jordanian Commercial Banks neural scoring approach
Review of Development Finance, 2014Co-Authors: Hussain Ali Bekhet, Shorouq Fathi EletterAbstract:Despite the increase in the number of non-performing loans and competition in the banking market, most of the Jordanian Commercial Banks are reluctant to use data mining tools to support credit decisions. Artificial neural networks represent a new family of statistical techniques and promising data mining tools that have been used successfully in classification problems in many domains. This paper proposes two credit scoring models using data mining techniques to support loan decisions for the Jordanian Commercial Banks. Loan application evaluation would improve credit decision effectiveness and control loan office tasks, as well as save analysis time and cost. Both accepted and rejected loan applications, from different Jordanian Commercial Banks, were used to build the credit scoring models. The results indicate that the logistic regression model performed slightly better than the radial basis function model in terms of the overall accuracy rate. However, the radial basis function was superior in identifying those customers who may default.
Martin Shubik - One of the best experts on this subject based on the ideXlab platform.
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varying the money supply of Commercial Banks
Social Science Research Network, 2014Co-Authors: Martin Shubik, Eric SmithAbstract:We consider the problem of financing two productive sectors in an economy through bank loans, when the sectors may experience independent demands for money but when it is desirable for each to maintain an independently determined sequence of prices. An idealized central bank is compared with a collection of Commercial Banks that generate profits from interest rate spreads and flow those through to a collection of consumer/owners who are also one group of borrowers and lenders in the private economy. We model the private economy as one in which both production functions and consumption preferences for the two goods are independent, and in which one production process experiences a shock in the demand for money arising from an opportunity for risky innovation of its production function. An idealized, profitless central bank can decouple the sectors, but for-profit Commercial Banks inherently propagate shocks in money demand in one sector into price shocks with a tail of distorted prices in the other sector. The connection of profits with efficiency-reducing propagation of shocks is mechanical in character, in that it does not depend on the particular way profits are used strategically within the banking system. In application, the tension between profits and reserve requirements is essential to enabling but also controlling the distributed perception and evaluation services provided by Commercial Banks. We regard the inefficiency inherent in the profit system as a source of costs that are paid for distributed perception and control in economies.
Zeng Cheng - One of the best experts on this subject based on the ideXlab platform.
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do foreign strategic investors change the lending behavior of state owned Commercial Banks an empirical analysis based on dynamic panel data model
Modern Economic Science, 2011Co-Authors: Zeng ChengAbstract:By using provincial panel data for Chinese Commercial Banks through 2002-2007,this paper studies the impact of introducing Foreign Strategic Investors(FSI) on the lending behavior of state-owned Commercial Banks.We conduct the system generalized method of moments(SYS-GMM) estimation within the lending growth framework.The results show that the lending behavior between state-owned Commercial Banks and other Banks is significantly different.Specifically,lending growth of state-owned Commercial Banks is negatively related to profitability while such relationship is positive for other Commercial Banks,implying that the lending behavior of the latter is more likely to be Commercial oriented.Besides,introducing FSI improves the overall lending behavior of state-owned Commercial Banks;however,this positive effect is not significant.The conclusions have important policy-making implications for China bank reform.
Wachira, Alexander Kinyua - One of the best experts on this subject based on the ideXlab platform.
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EFFECTS OF CREDIT RISK MANAGEMENT PRACTICES ON LOAN PERFORMANCE OF Commercial Banks IN NYERI COUNTY, KENYA
2017Co-Authors: Wachira, Alexander KinyuaAbstract:This study sought to establish how various credit risk management practices affect performance of Commercial Banks in Nyeri County in Kenya. Even though Commercial Banks face several types of risks, credit risk stands out as the most severe. Credit risk is the possibility of loss to the lender on non-performing loans. Financial practice as well as theory provides a scientific process of credit risk management in financial institutions. However, lenders still face loan default and consequently this study sought to find out how those practices affect the performance of Commercial Banks in Nyeri County, Kenya. A census study was conducted where a population of 86 respondents was targeted comprising of branch managers, credit managers and credit officers. The findings of the study were that all Commercial Banks had a well written credit policy which is strictly and consistently followed. Only few Commercial Banks conduct a quantitative credit scoring model. In all Banks, initial screening is done by credit officer and approval done at different levels depending on the amount. Majority of the Banks check post borrowing activities of the borrower. In conclusion, credit risk management has an effect on loan performance amongst Commercial Banks. Thus, managers should evaluate more accurately the ability to pay back of a customer since the better the screening the better the performance of Commercial Banks
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EFFECTS OF CREDIT RISK MANAGEMENT PRACTICES ON LOAN PERFORMANCE OF Commercial Banks IN NYERI COUNTY, KENYA
Open Access Publishing Group, 2017Co-Authors: Wachira, Alexander KinyuaAbstract:This study sought to establish how various credit risk management practices affect performance of Commercial Banks in Nyeri County in Kenya. Even though Commercial Banks face several types of risks, credit risk stands out as the most severe. Credit risk is the possibility of loss to the lender on non-performing loans. Financial practice as well as theory provides a scientific process of credit risk management in financial institutions. However, lenders still face loan default and consequently this study sought to find out how those practices affect the performance of Commercial Banks in Nyeri County, Kenya. A census study was conducted where a population of 86 respondents was targeted comprising of branch managers, credit managers and credit officers. The findings of the study were that all Commercial Banks had a well written credit policy which is strictly and consistently followed. Only few Commercial Banks conduct a quantitative credit scoring model. In all Banks, initial screening is done by credit officer and approval done at different levels depending on the amount. Majority of the Banks check post borrowing activities of the borrower. In conclusion, credit risk management has an effect on loan performance amongst Commercial Banks. Thus, managers should evaluate more accurately the ability to pay back of a customer since the better the screening the better the performance of Commercial Banks. JEL: G31, E51, G21 Article visualizations