| Article ID: | iaor2002777 |
| Country: | United Kingdom |
| Volume: | 4 |
| Issue: | 1 |
| Start Page Number: | 89 |
| End Page Number: | 95 |
| Publication Date: | Jan 1992 |
| Journal: | IMA Journal of Mathematics Applied in Business and Industry |
| Authors: | Leonard Kevin J. |
| Keywords: | credit scoring |
In this paper, the decision process of commercial loan officers is modelled. Specifically, commercial loan applications from a major Canadian bank were analysed. Credit-scoring models using discriminant analysis and logit regression were created in an effort to replicate the decision process. Results indicate that credit-scoring models for small-business loans are effective and that further analysis in this area is warranted.