Implementation of credit scoring card model based on logistic regression and lightgbm

2021 ◽  
Author(s):  
Baichuan Liu ◽  
Likun Lu ◽  
Qingtao Zeng ◽  
Yeli Li
Keyword(s):  
Logistic Regression ◽  
Credit Scoring ◽  
Model Based ◽  
Card Model

Regression model of assessment of customer solvency and banking risks in the process of lending

2019 ◽  
pp. 69-73
Author(s):  
Zoryna Yurynets ◽  
Rostyslav Yurynets ◽  
Nataliya Kunanets ◽  
Ivanna Myshchyshyn
Keyword(s):  
Logistic Regression ◽  
Discriminant Analysis ◽  
Regression Model ◽  
Likelihood Ratio ◽  
Credit Scoring ◽  
Bank Loans ◽  
Management Decisions ◽  
Computer Data ◽  
Proposed Model ◽  
Loan Risk

In the current conditions of economic development, it is important to pay attention to the study of the main types of risks, effective methods of evaluation, monitoring, analysis of banking risks. One of the main approaches to quantitatively assessing the creditworthiness of borrowers is credit scoring. The objective of credit scoring is to optimize management decisions regarding the possibility of providing bank loans. In the article, the scientific and methodological provisions concerning the formation of a regression model for assessing bank risks in the process of granting loans to borrowers has been proposed. The proposed model is based on the use of logistic regression tools, discriminant analysis with the use of expert evaluation. During the formation of a regression model, the relationship between risk factors and probable magnitude of loan risk has been established. In the course of calculations, the coefficient of the individual's solvency has been calculated. Direct computer data preparation, including the calculation of the indicators selected in the process of discriminant analysis, has been carried out in the Excel package environment, followed by their import into the STATISTICA package for analysis in the “Logistic regression” sub-module of the “Nonlinear evaluation” module. The adequacy of the constructed model has been determined using the Macfaden's likelihood ratio index. The calculated value of the Macfaden's likelihood ratio index indicates the adequacy of the constructed model. The ability to issue loans to new clients has been evaluated using a regression model. The conducted calculations show the possibility of granting a loan exclusively to the second and third clients. The offered method allows to conduct assessment of client's solvency and risk prevention at different stages of lending, facilitates the possibility to independently make informed decisions on credit servicing of clients and management of a loan portfolio, optimization of management decisions in banks. In order for a loan-based model to continue to perform its functions, it must be periodically adjusted.

An Optimized Logistic Regression Model Based on the Maximum Entropy Estimation Under the Hesitant Fuzzy Environment

2021 ◽  
pp. 1-25
Author(s):  
Chenyang Song ◽  
Liguo Wang ◽  
Zeshui Xu
Keyword(s):  
Logistic Regression ◽  
Regression Model ◽  
Maximum Entropy ◽  
Logistic Regression Model ◽  
Uncertain Information ◽  
Entropy Estimation ◽  
Model Based ◽  
Fuzzy Environment ◽  
Maximum Entropy Estimation ◽  
Specific Implementation

The logistic regression model is one of the most widely used classification models. In some practical situations, few samples and massive uncertain information bring more challenges to the application of the traditional logistic regression. This paper takes advantages of the hesitant fuzzy set (HFS) in depicting uncertain information and develops the logistic regression model under hesitant fuzzy environment. Considering the complexity and uncertainty in the application of this logistic regression, the concept of hesitant fuzzy information flow (HFIF) and the correlation coefficient between HFSs are introduced to determine the main factors. In order to better manage situations with small samples, a new optimized method based on the maximum entropy estimation is also proposed to determine the parameters. Then the Levenberg–Marquardt Algorithm (LMA) under hesitant fuzzy environment is developed to solve the parameter estimation problem with fewer samples and uncertain information in the logistic regression model. A specific implementation process for the optimized logistic regression model based on the maximum entropy estimation under the hesitant fuzzy environment is also provided. Moreover, we apply the proposed model to the prediction problem of Emergency Extreme Air Pollution Event (EEAPE). A comparative analysis and a sensitivity analysis are further conducted to illustrate the advantages of the optimized logistic regression model under hesitant fuzzy environment.

Research on C2C Credit Evaluation Model Based on Perceived Credibility of the Buyer

2014 ◽  
Vol 687-691 ◽  
pp. 4984-4989
Author(s):  
Chen Xing Bai
Keyword(s):  
Consumer Protection ◽  
Scoring System ◽  
Evaluation Model ◽  
Credit Scoring ◽  
Credit Evaluation ◽  
Perceived Credibility ◽  
Model Based ◽  
Evaluation Time ◽  
Transaction Value

Focusing on the lack of credit scoring system and credit evaluation model, the paper builds <qualitative perception, quantitative perception> reputation tuple based on perceived credibility of the buyer. Qualitative perception is six indicators assembly, including shop image, customer communication, payment, whether to join the consumer protection service , whether to join the Commercial Union and feedback comment; Quantitative perception is three indicators assembly, including buyer credit , the transaction value of the goods and evaluation time. Through analyzing of the case, reputation tuple can be more objective, more scientific, more comprehensive response to the seller's real credibility.

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