Summary of Credit Risk Assessment Methods

Abstract

It is the forefront research direction for credit risk management field to explore the theory and method of social-economic entity credit characteristics evaluation, improve and deepen the market-economy entity credit evaluation system. The paper improves various "modern" credit risk evaluation modes based on "traditional" credit risk evaluation models combined with credit risk concept and classification as well as credit risk evaluation methods. From overseas scholars' literature achievements to domestic scholars' latest research, the paper makes a full exploration and analysis. It evaluates American credit managers index, world bank credit information index, China credit well-off index and other typical credit indexes.

The effectiveness of Different Credit Risk Assessment Methods on Loan Performance

“…With the rapid development of computers, software, tools, financial engineering, mathematical knowledge, and increase in the theory knowledge, it is now easy to have quantitative evaluation of customer regarding his credit risk. These methods are called modern risk evaluation methods (Cai, Qian, 2018).…”