The use of credit scoring--the quantitative and statistical techniques to assess the credit risks involved in lending to consumers--has been one of the most successful if unsung applications of mathematics in business for the last fifty years. Now with lenders changing their objectives from minimising defaults to maximising profits, the saturation of the consumer credit market allowing borrowers to be more discriminating in their choice of which loans, mortgages and credit cards to use, and the Basel Accord banking ...
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The use of credit scoring--the quantitative and statistical techniques to assess the credit risks involved in lending to consumers--has been one of the most successful if unsung applications of mathematics in business for the last fifty years. Now with lenders changing their objectives from minimising defaults to maximising profits, the saturation of the consumer credit market allowing borrowers to be more discriminating in their choice of which loans, mortgages and credit cards to use, and the Basel Accord banking regulations raising the profile of credit scoring within banks there are a number of challenges that require new models that use credit scores as inputs and extensions of the ideas in credit scoring. This book reviews the current methodology and measures used in credit scoring and then looks at the models that can be used to address these new challenges. The first chapter describes what a credit score is and how a scorecard is built which gives credit scores and models how the score is used in the lending decision. The second chapter describes the different ways the quality of a scorecard can be measured and points out how some of these measure the discrimination of the score, some the probability prediction of the score, and some the categorical predictions that are made using the score. The remaining three chapters address how to use risk and response scoring to model the new problems in consumer lending. Chapter three looks at models that assist in deciding how to vary the loan terms made to different potential borrowers depending on their individual characteristics. Risk based pricing is the most common approach being introduced. Chapter four describes how one can use Markov chains and survival analysis to model the dynamics of a borrower's repayment and ordering behavior. These models allow one to make decisions that maximize the profitability of the borrower to the lender and can be considered as part of a customer relationship management strategy. The last chapter looks at how the new banking regulations in the Basel Accord apply to consumer lending. It develops models that show how they will change the operating decisions used in consumer lending and how their need for stress testing requires the development of new models to assess the credit risk of portfolios of consumer loans rather than a models of the credit risks of individual loans.
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Seller's Description:
This is an ex-library book and may have the usual library/used-book markings inside. This book has hardback covers. Clean from markings. In good all round condition. Please note the Image in this listing is a stock photo and may not match the covers of the actual item, 800grams, ISBN: 9780199232130.
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New. A text aimed at credit analysts in industry and students in Statistics, Management Science, Operational Research and Banking and Finance Masters courses that will use simple probability models and logical arguments to explain consumer credit scoring. Num Pages: 400 pages, 77 line drawings. BIC Classification: KCHS; KFFK; PBT; PBW. Category: (UP) Postgraduate, Research & Scholarly; (UU) Undergraduate. Dimension: 235 x 163 x 27. Weight in Grams: 754. 2009.....We ship daily from our Bookshop.
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Good. Connecting readers with great books since 1972! Used textbooks may not include companion materials such as access codes, etc. May have some wear or writing/highlighting. We ship orders daily and Customer Service is our top priority!
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Fair. A readable copy. All pages are intact and the cover is intact. Dust jacket may be missing. Pages can include considerable highlighting markings writing but cannot obscure the text. May be an Ex-lib. copy and have standard library stamps and or stickers. May NOT include discs or access code or other supplemental material. We ship Monday-Saturday and respond to inquiries within 24 hours.
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Very good. Connecting readers with great books since 1972! Used books may not include companion materials, and may have some shelf wear or limited writing. We ship orders daily and Customer Service is our top priority!
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Fine. Glued binding. Paper over boards. 400 p. Contains: Tables, black & white, Figures. In Stock. 100% Money Back Guarantee. Brand New, Perfect Condition, allow 4-14 business days for standard shipping. To Alaska, Hawaii, U.S. protectorate, P.O. box, and APO/FPO addresses allow 4-28 business days for Standard shipping. No expedited shipping. All orders placed with expedited shipping will be cancelled. Over 3, 000, 000 happy customers.
