THE CONSTRUCTION TO BANK LOAN DECISION-MAKING SYSTEM BASED ON ORDERED PROBIT MODEL

• Main Authors: Fuh-Iou Li, 李阜優
• Other Authors: Yuh-chiao Lin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/61104588193745783283

碩士 === 國立中正大學 === 會計所 === 95 === Generally speaking, 5P Principle is used to examine loan customers’ credit quality. Also, Logit and Probit regression models are used to predict the future sovereignty of borrowers. This research is trying to establish a Bank Loan Decision-making System based on Ordered Probit Model (OPM). The result shows that these three models (OPM, Logit and Probit) all have excellent total prediction ability. Among the three models, OPM is more effective when the dependent variables is ordinal. On other management applications, OPM still has its practicality and necessity. For instance, OPM not only sets up interest rate in accordance with different credit rank, but also brings different bad debt allowance for uncollectible and so on.