Establishment of the Credit Risk Database: Concrete Use to Evaluate the Creditworthiness of SMEs

Satoshi Kuwahara, Naoyuki Yoshino (), Megumi Sagara and Farhad Taghizadeh-Hesary ()
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Satoshi Kuwahara: Asian Development Bank Institute
Megumi Sagara: Asian Development Bank Institute

No 924, ADBI Working Papers from Asian Development Bank Institute

Abstract: The credit risk database (CRD) makes it possible to mitigate the problem of information asymmetry between small and medium-sized enterprises (SMEs) and financial institutions and contributes to improving SMEs’ access to finance by collecting a large number of financial statements through the mechanism of SME finances and establishing a robust statistical model. We use the CRD in Japan, confirm the situation in Japan, and highlight the CRD’s contribution to evaluating the creditworthiness of SMEs. We also explain how to establish the CRD as a financial infrastructure, while indicating that the CRD and the scoring model based on it have maintained their quality owing to their operating system. We hope our experience contributes to the introduction of a statistical credit risk database composed of a large number of anonymous financial statement data in other countries and that the CRD helps to improve SMEs’ access to finance as a financial infrastructure.

Keywords: credit risk database; CRD creditworthiness; SMEs in Japan (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2019-02-21
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-ent, nep-ict, nep-rmg and nep-sea
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Citations: View citations in EconPapers (1)

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