• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2011 Vol.2(2): 125-131 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2011.V2.90

A Hybrid Method for Credit Risk Assessment of Bank Customers

Sanaz Pourdarab, Ahmad Nadali and Hamid Eslami Nosratabadi
Abstract—Credit risk assessment is one of the crucial issues which financial institutions particularly banks are faced and determining the effective variables is one of the critical parts in this type of studies. The purpose of this research is to present a hybrid method for evaluating credit risk of bank customers. Here, after extracting significant financial ratios from balance sheet, Kolmogorove-Smirnov test has been used to specify kind of financial ratios distribution. Then, T test has been run to select meaningful variables and DEMATEL method to determine effective ones. Finally, a Fuzzy Expert system has been developed to assess credit risk according to specified effective financial ratios as the system inputs. The presented steps have been studied in an Iranian Bank as empirical study.

Index Terms—Credit Risk Assessment, MCDM, DEMATEL, Fuzzy Expert system.

First Author, Sanaz Pourdarab is with the Department of Information Technology Management, Science and Research Branch, Islamic Azad University, Tehran, Iran (Email:Pourdarab.sanaz@yahoo.com).
Second Author, Ahmad Nadali is with the Department of Information Technology Management, Science and Research Branch, Islamic Azad University, Tehran, Iran (Email:Nadali.ahmad@gmail.com).
Third Author, Hamid Eslami Nosratabadi is with the Department of Information Technology Management, Science and Research Branch, Islamic Azad University, Tehran, Iran (Corresponding author’s email is Hamideslami.na@gmail.com).

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Cite:Sanaz Pourdarab, Ahmad Nadali and Hamid Eslami Nosratabadi, "A Hybrid Method for Credit Risk Assessment of Bank Customers," International Journal of Trade, Economics and Finance vol.2, no.2, pp. 125-131, 2011.

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