Decision Support System for Credit Risk Management: An Empirical Study

Mehmet Resul Bilginci, Gamze Ogcu Kaya and Ali Turkyilmaz
Additional contact information
Mehmet Resul Bilginci: Yapı Kredi Bank, Istanbul, Turkey
Gamze Ogcu Kaya: Sampoerna University, Jakarta, Indonesia
Ali Turkyilmaz: Nazarbayev University, Astana, Kazakhstan

International Journal of Information Systems in the Service Sector (IJISSS), 2019, vol. 11, issue 2, 18-31

Abstract: Risk is an integrated part of the banking functions, which cannot be eliminated completely but it can be reduced by employing appropriate techniques. Credit processing is one of the core functions in the banking system, and its performance is closely related to management of the risks. The aim of this article is to develop a credit scorecard model which can be used as decision support system. A logistic regression with stepwise selection method is used to estimate the model parameters. The data that is used to construct the credit scorecard model is obtained from one of the pioneering banks in Turkish Banking Sector. The performance of the developed model is tested using statistical metrics including Receiver Operator Characteristic (ROC) curve and Gini statistics. The result reveals that the model performs well and it can be used as a decision support system for managing the credit risk by managers of the banks.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 18/IJISSS.2019040102 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jisss0:v:11:y:2019:i:2:p:18-31

Access Statistics for this article

International Journal of Information Systems in the Service Sector (IJISSS) is currently edited by John Wang

More articles in International Journal of Information Systems in the Service Sector (IJISSS) from IGI Global
Bibliographic data for series maintained by Journal Editor ().