EconPapers    
Economics at your fingertips  
 

A new index of creditworthiness for retail credit products

L Quirini () and L Vannucci
Additional contact information
L Quirini: Consum.it – Monte dei Paschi di Siena Group
L Vannucci: University of Florence

Journal of the Operational Research Society, 2010, vol. 61, issue 3, 455-461

Abstract: Abstract This paper introduces a novel family of indexes to describe borrowers’ creditworthiness in retail credit products, both for fixed term loans and for open-ended products such as credit cards. Each index is the ratio at a given time of the net present value of actually received cashflows to the contractual ones. Some interpretations of the indexes are given and it is also described how to link them to the profitability of the credit financial operation. For open-ended products, a competing risks survival analysis methodology is proposed to estimate the cashflow returns and illustrated with a simulation.

Keywords: credit scoring; retail credit; profitability; creditworthiness; fixed term credit product; revolving credit product (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/jors.2009.68 Abstract (text/html)
Access to full text is restricted to subscribers.

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:pal:jorsoc:v:61:y:2010:i:3:d:10.1057_jors.2009.68

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

DOI: 10.1057/jors.2009.68

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:pal:jorsoc:v:61:y:2010:i:3:d:10.1057_jors.2009.68