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Can Credit Scoring Models Prevent Default Payments In The Banking Industry In The Period Of Financial Crisis?, Violeta Madzova, Nehat Ramadini

International Journal of Business and Technology

Credit scoring is a scientific method of assessing the credit risk associated with new credit applications as well as for monitoring of the credit risk in the process of the loan payment. Therefore credit scoring models developed in the banks based on their internal information system, as well as the credit info system in the country, can help the banks to ensure more consistent underwriting and can provide management with a more insightful measure of credit risk. While credit scoring could be a valuable risk management tool in virtually any bank setting, it is probably not wide accepted in the …