Credit risk assessment: a challenge for financial institutions

Kalapodas, Evangelos and Thomson, Mary (2005) Credit risk assessment: a challenge for financial institutions. IMA Journal of Management Mathematics, 17 (1). pp. 25-46. ISSN 1471-678X

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Abstract

This study explores financial credit risk assessment. This is an important issue because there is currently no standardized method used by financial institutions for the assessment of credit risk. A critical evaluation of the most popular credit risk assessment methods—the judgmental method, credit-scoring and portfolio models—highlights a number of limitations when used on their own. Several interviewees confirm that credit risk assessment methods should be combined for effective credit risk assessment. Accordingly, the study proposes a framework for improving credit risk assessment, which combines the strengths of these methods and copes successfully with their limitations.

Item Type:	Article
Uncontrolled Keywords:	judgmental method, credit-scoring models, portfolio models
Subjects:	N300 Finance
Department:	Faculties > Business and Law > Newcastle Business School
Depositing User:	Becky Skoyles
Date Deposited:	14 Mar 2014 14:14
Last Modified:	19 Nov 2019 09:54
URI:	http://nrl.northumbria.ac.uk/id/eprint/15821

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