Education, Science, Technology, Innovation and Life
Open Access
Sign In

Credit decision-making of small, medium and micro enterprises based on entropy the paperight method and RAROC model

Download as PDF

DOI: 10.23977/ferm.2021.040204 | Downloads: 2 | Views: 227

Author(s)

Yueke Yang 1, Sijia Bi 1

Affiliation(s)

1 College of sciences, Northeastern University, Shenyang, Liaoning 110004

Corresponding Author

Yueke Yang

ABSTRACT

In recent years, small, medium and micro enterprises have shown great development potential. Hothe paperver, due to a series of characteristics such as unstable operating conditions, banks need to improve the level of credit risk management for small, medium and micro enterprises. In this paper, through the entropy the paperight method and RAROC (return on venture capital), and based on the enterprise invoice information and credit rating data, the credit risk assessment method and credit decision-making scheme of micro, small and medium-sized enterprises are deeply discussed, and a series of reasonable conclusions are drawn. The paper establish an enterprise credit risk evaluation model based on entropy the paperight method, and according to this risk evaluation model, the paper get the bank credit strategy based on RAROC. In order to get a specific credit strategy, the paper refer to the actual policy of the bank, considering two aspects before and after the demand for loan from the enterprise: before the demand for loan, the bank works out the line of credit according to the annual profit of the enterprise, and takes this as the suggestion and limitation for the evaluation of the credit line of the enterprise.

KEYWORDS

Entropy the paperight method, RAROC model, support vector machine, correction factor matrix, credit line

CITE THIS PAPER

Yueke Yang, Sijia Bi, The Potential Impacts of Quantitative Easing on the U.S Financial Markets. Financial Engineering and Risk Management (2021) 4: 17-20. DOI: http://dx.doi.org/10.23977/ferm.2021.040204

REFERENCES

[1] Zhou Ruifen. Research on Credit Risk of F Commercial Bank Small and Micro Enterprises [D]. Jiangxi University of Finance and Economics, 2019.
[2] Liu Chunxiao. Research on the Loan Pricing Management of Commercial Banks in China [D]. Guangxi Zhuang Autonomous Region: Guangxi University, 2012.
[3] National Bureau of Statistics department set pipe. The National Bureau of Statistics on the medium and tiny enterprise in the printing of statistical method notice [EB/OL]. http://www.stats.gov.cn/, 2011-9-9.
[4] Li The papernxiu. The Impact of Emergencies on Corporate Financial Performance and Its Countermeasures [D]. Guangxi University, 2012.
[5] Han Zhiyong, The paperng The papernguo, Zhang The paperi, Yang Liexun.The scientific background, goal and organization management of the major research project "unconventional emergency management research" [J]. Science Foundation of China, 2009, 23(04): 215-220.

Downloads: 984
Visits: 37978

All published work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2016 - 2031 Clausius Scientific Press Inc. All Rights Reserved.