Credit scoring models play a fundamental role in the risk management practice at most banks. They are used to quantify credit risk at counterparty or transaction level in the different phases of the credit cycle (e.g. application, behavioural, collection models). The credit score empowers users to make quick decisions or even to automate decisions and this is extremely desirable when banks are ...

Essays on Banking and Local Credit Markets by Hoai-Luu Q. Nguyen Submitted to the Department of Economics on May 15, 2015, in partial fulfillment of the requirements for the degree of Doctor of Philosophy This thesis consists of three chapters on banking and local credit markets. The first chapter studies the relationship between bank-specific capital and credit access in a new setting: bank br...

Recently, several platforms for arranging credit mediation between borrowers and lenders without usage of a financial intermediary have emerged. Social lending has attracted the interest of researchers who analyzed the behavior of borrowers and lenders on these platforms. The authors examine the impact of pre-made text modules and usage of peer groups on the funding success of a credit request....

We use loan-level data to study how the organizational structure of banks impacts small business lending. We find that decentralized banks—where branch managers have greater autonomy over lending decisions—give larger loans to small firms and those with ‘‘soft information.’’ However, decentralized banks are also more responsive to their own competitive environment. They are more likely to expan...

Most credit in India is provided by public-sector banks. Previous research has found that loan officers in public banks decline profitable lending opportunities, and are strikingly reluctant to enhance loans of growing and profitable firms. Loan officers in government owned banks often cite fear of prosecution for corruption as a reason for their rigid and conservative lending decisions. Using ...

In the financial world there is a need for effectiveness and efficiency. The Farm Credit Quick loan analysis is a process created by Fair-Isaac. This analysis is referred to as scorecard lending. It uses a combination of financial data to determine the risk of the customer or candidate. Farm Credit fully adopted this process in 1997, for loans under $100,000.00. Efficiency and effectiveness is ...

A central question in emerging-market macroeconomics is what factors lead countries to accumulate excessive levels of external debt. It is often argued by economic observers and policymakers that emerging markets tend to overborrow when the lending decisions of foreign financial institutions are guided by rough indicators of the emerging country’s macroeconomic performance, and not by careful a...

Within the article, the impact of modern digitalization processes on changing household credit behavior is considered. Much attention is paid to defining the essence of digitalization and exploring the features of its impact on the financial services market. Accordingly, the content of household credit behavior and its individual models are examined. This behavior is proposed to be considered a...