Research on the Default Risk and Credit Strategy of Small and Medium-Sized Enterprise

DOI

10.2991/aebmr.k.210319.051How to use a DOI?

Keywords

Small and medium-sized enterprise, Default risk, Credit strategy, CART decision tree, NSGA-II

Abstract

With the rapid development of China’s multilevel capital markets, small and medium-sized enterprises gradually occupy an important part of the market economy. Due to the characteristics of small scale, simple technology, low financing and capital utilization efficiency of SMEs, commercial banks will have concerns when facing loans, therefore a more effective credit evaluation criteria should be designed. This article studies the default risk and credit strategy of SMEs from the perspective of banks. For the default risk assessment system, the default risk prediction model is constructed based on the Logistic regression model, and the corporate reputation rating model is constructed based on the CART decision tree. For bank credit strategy decisions, risk reduction and profit gain should be balanced reasonably. The establishment of the dual-objective optimization model can better deal with the trade-off between risk and profit, thus determine the bank’s loan strategy. The Pareto efficiency of the model is obtained by NSGA-II optimization technology.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Siqi Guo
AU  - Wanqing Peng
AU  - Haoxuan Li
PY  - 2021
DA  - 2021/03/22
TI  - Research on the Default Risk and Credit Strategy of Small and Medium-Sized Enterprise
BT  - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021)
PB  - Atlantis Press
SP  - 281
EP  - 285
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210319.051
DO  - 10.2991/aebmr.k.210319.051
ID  - Guo2021
ER  -