Comprehensive Study of Small Micro-Enterprise Credit Risk Quantification and Credit Decisions

Abstract

In order to solve the problem of bank credit risk quantification and credit alloca-tion strategy for small, medium and micro enterprises, This paper deals with the data indicators of 123 enterprises with credit records, Logistic regression model and RAROC (risk-adjusted return) model are used comprehensively, the default probability of an enterprise is obtained as the quantitative result of credit risk, and according to the risk quantification results to develop credit strategy. Finally, comprehensive consideration of a variety of emergent factors on the different impact of enterprises, and make adjustments to your credit strategy.