scholarly journals Loan Risk Compensation Fund Stimulating Effect on SME Loans Inspection

Author(s):  
Miao Tian ◽  
Mu Zhang
Keyword(s):  
Author(s):  
Zoryna Yurynets ◽  
Rostyslav Yurynets ◽  
Nataliya Kunanets ◽  
Ivanna Myshchyshyn

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.


2021 ◽  
Author(s):  
Ian Ayres ◽  
Alessandro Romano ◽  
Chiara Sotis

BACKGROUND Due to network effects, Contact Tracing Apps (CTAs) are only effective if many people download them. However, the response to CTAs has been tepid. For example, in France less than 2 million people (roughly 3% of the population) downloaded the CTA. Consequently, CTAs need to be fundamentally rethought to increase their effectiveness. OBJECTIVE This study aimed to show that CTAs can still play a key role in containing the pandemic, provided that they take into account insights from behavioral sciences. Moreover, we study whether emphasizing the virtues of CTA to induce people to download them makes app users engage in more risky behaviors (risk compensation theory) and whether feedback on a user’s behavior affects future behaviors. METHODS We perform a double-blind online experiment (n=1500) divided in two phases. In Phase I respondents are randomly assigned to one of three different groups: Pros of the app, Pros and Cons of the app and Control I. Respondents in the Pros group were shown information on the advantages of CTAs. Participants in the Pros and Cons group were shown information on both the advantages and the problems that characterize CTAs. Last, respondents in the Control I group were not given any information on CTAs. All participants are then asked how worried they are about the pandemic, how likely they are to download the app, and on how they intend to behave (e.g. attend small and large gathering, wear a mask, etc.). A week later we carried out Phase II. Participants in Phase II were randomly assigned to different in-app notifications in which they were informed on how much risk they were taking compared to the average user. We then ask participants their intentions for future behaviors to investigate whether these notifications were effective in making respondents more prudent. RESULTS All 1500 participants completed phase I of the experiment, whereas 1303 (86.9%) completed also phase 2. The main findings are: i) informing people on the pros of the app make them less worried about the pandemic (p=.004), ii) informing people about both the pros and the cons of the app makes them more likely to download the app (p=.07); iii) carefully devised in-app notification induce people to state that they will: attend less large gatherings (p= .05) and less small gatherings (p= .001), see less people at risk (p=.004), that they stay more at home (p=.006) and wear more often the mask (p=.09). We do not find support for the risk-compensation theory. CONCLUSIONS we suggest that CTAs should be re-framed as Behavioral Feedback Apps (BFAs). The main function of BFAs would be providing users with information on how to minimize the risk of contracting COVID-19, e.g. to provide information on how crowded a store is likely to be at a given time of the day. Moreover, the BFA could have a rating system that allows users to flag stores that do not respect safety norms, such as mandating customers to wear a mask or not respecting social distancing. These functions can inform the behavior of app users, thus playing a key role in containing the spread of the virus even if a small percentage of people download the BFA. While effective contact tracing is impossible when only 3% of the population downloads the app, less risk taking by small portions of the population can produce large benefits. BFAs can be programmed so that users can also activate a tracing function akin to the one currently carried out by CTAs. Making contact tracing an ancillary, opt-in function might facilitate a wider acceptance of BFAs.


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