Home  Journals  National Interests: Priorities and Security  5(194) - 2013 February

Application of logistic regression method for forecasting of probability of default at express crediting

Available online: 11 February 2013

Subject Heading: ECONOMIC DEVELOPMENT STRATEGY

JEL Classification: 

This article describes a new scoring model based on method of logistic regression. In contradiction to current scoring models applied in classic lending products, this model takes into account not only credit risks from borrows but also operational risks from staff. The practical recommendations concerning the construction of such a system and it is estimated its prediction quality are given.

Keywords: retail loans, scoring, logistic regression, credit risks, operational risks, probability of default

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ISSN 2311-875X (Online)
ISSN 2073-2872 (Print)

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