On the applicability of credit scoring models in Egyptian banks

H. Abdou, A. El-Masry, J. Pointon

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Credit scoring is regarded as a core competence of commercial banks during the last few decades. A number of credit scoring models have been developed to evaluate credit risk of new loan applicants and existing loan clients. The main purpose of the present paper is to evaluate credit risk in Egyptian banks using credit scoring models. Three statistical techniques are used: discriminant analysis, probit analysis and logistic regression. The credit scoring task is performed on one bank’s personal loans data-set. The results so far revealed that all proposed models gave a better average correct classification rate than the one currently used. Also both type I and type II errors had been calculated in order to evaluate the misclassification costs.
Original languageEnglish
Number of pages18
JournalBanks and Bank Systems
Volume2
Issue number1
Publication statusPublished - 3 Apr 2007
Externally publishedYes

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credit
bank
loan
Data privacy
Discriminant analysis
Logistics
discriminant analysis
applicant
Credit scoring
Costs
logistics
Loans
regression
costs
Credit risk

Bibliographical note

© The author(s) 2019. This publication is an open access article.

Cite this

On the applicability of credit scoring models in Egyptian banks. / Abdou, H.; El-Masry, A.; Pointon, J.

In: Banks and Bank Systems, Vol. 2, No. 1, 03.04.2007.

Research output: Contribution to journalArticle

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