Fuzzy Adaptive Networks in credit rating and loan approval
ثبت نشده
چکیده
Fuzzy adaptive network (FAN) is proposed to help decision makers in credit scores and to assign the amount of loan. By combining with neural networks to incorporate the learning ability, FAN provides an alternative approach for the imprecision and fuzziness of the credit rating system. A loan approval example is given and the performance of FAN is compared with the regression algorithm. The results show that FAN is favored than regression in this financial application. Key-words: Fuzzy adaptive network (FAN); Inference system; Credit rating; Loan approval; Regression
منابع مشابه
Designing an Expert System for Credit Rating of Real Customers of Banks Using Fuzzy Neural Networks
Currently, in Iran's banking system, non-repayment of facilities has become one of the biggest issues, and due to the lack of a proper system for proper allocation of facilities, they face a number of problems, including the problem of allocation of loans, the problem of failure to repay loans Of the central bank, or the amount of facilities increased from the amount of reimbursement. The solut...
متن کاملContingent Fuzzy Approach for the Development of Banks’ Credit-Granting Evaluation Model: The Case of Taiwan
In the past Taiwanese banks that evaluated customers’ credit emphasized collaterals and guarantors, adopting such methods as the rule of thumb, a credit rating system, and numeric credit scoring system that are primarily based upon subjective judgements. However, Taiwanese banks nowadays no longer possess a superior competitive position, owing to the internationalization and liberalization of T...
متن کاملForecasting Industrial Production in Iran: A Comparative Study of Artificial Neural Networks and Adaptive Nero-Fuzzy Inference System
Forecasting industrial production is essential for efficient planning by managers. Although there are many statistical and mathematical methods for prediction, the use of intelligent algorithms with desirable features has made significant progress in recent years. The current study compared the accuracy of the Artificial Neural Networks (ANN) and Adaptive Nero-Fuzzy Inference System (ANFIS) app...
متن کاملThe Valuation Effects of Bank Loan Ratings in the Presence of Multiple Monitors
Studies have shown that when two information providers or outside auditors exist, the value provided by the second one will be decreased by the actions of the first. Capitalizing on the highly similar functions performed by banks and rating agencies, this paper examines the informational value of the credit ratings of bank loans. Further, it provides evidence on whether rating agencies duplicat...
متن کاملModeling of streamflow- suspended sediment load relationship by adaptive neuro-fuzzy and artificial neural network approaches (Case study: Dalaki River, Iran)
Modeling of stream flow–suspended sediment relationship is one of the most studied topics in hydrology due to itsessential application to water resources management. Recently, artificial intelligence has gained much popularity owing toits application in calibrating the nonlinear relationships inherent in the stream flow–suspended sediment relationship. Thisstudy made us of adaptive neuro-fuzzy ...
متن کامل