A Specific Solution to Decrease the Credit Risk at a Non-Banking Financial Institution
A Specific Solution to Decrease the Credit Risk at a Non-Banking Financial Institution
Author(s): Jenica Popescu, Mihaela Simionescu, Loredana Nela Cărăba, Bogdan PopaSubject(s): Methodology and research technology, Financial Markets, Socio-Economic Research
Published by: Editura Universitaria Craiova
Keywords: critical; credit risk; financial institution; binary logistic regression; principal component analysis;
Summary/Abstract: The main aim of this research is to assess the credit risk for a non-banking financial institution using empirical data. The results based on a sample of 800 clients indicated, using binary logistic regressions, that higher income category, higher education and age are, lower the chances are for a client with these characteristics of not refunding the credit. For people with high number of PNC validations the chances of default credit are higher. The characteristics related to social status (income category and education) had the greatest influence in explaining the clients’ behaviour, according to principal component analysis.
Journal: Revista tinerilor economişti
- Issue Year: 2016
- Issue No: 27
- Page Range: 19-28
- Page Count: 10
- Language: English