Author: Lyn C. Thomas
Edition:
Publisher: Oxford University Press, USA
Binding: Hardcover
ISBN: 019923213X
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You Save: 27%
Consumer Credit Models: Pricing, Profit and Portfolios
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.Consumer Credit Models review. 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 scoreRead full reviews of Consumer Credit Models.
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author lyn c thomas format hardback language english publication year 29 01 2009 subject management business economics industry subject 2 business accounting vocational textbooks study guides ean 9780199232130 title consumer credit models c sku st 019923213 x product category books comics magazines about speedy hen ltd by continuing with this checkout and ordering from speedy hen you are accepting our current terms and conditions details of which can be found by clicking here author biography br
Consumer Credit Models
Store Search search Title, ISBN and Author Consumer Credit Models: Pricing, Profit, and Portfolios by Lyn C. Thomas Estimated delivery 3-12 business days Format Hardcover Condition Brand 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. Publisher Description The use of credit scoring - the qua
Hardcover book, 385 pages. Published by Oxford University Press, USA (2009)
New Hardcover.
Consumer Credit Models Reviews
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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