Modelling credit rating by fuzzy adaptive network

Modelling credit rating by fuzzy adaptive network

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Article ID: iaor20072379
Country: Netherlands
Volume: 45
Issue: 5/6
Start Page Number: 717
End Page Number: 731
Publication Date: Mar 2007
Journal: Mathematical and Computer Modelling
Authors: , ,
Keywords: fuzzy sets
Abstract:

Human judgment plays an important role in the rating of enterprise financial conditions. The recently developed fuzzy adaptive network (FAN), which can handle systems whose behaviour is influenced by human judgment, appears to be ideally suited for the modelling of this credit rating problem. In this paper, FAN is used to model the credit rating of small financial enterprises. To illustrate the approach, the data of the credit rating problem are first represented by the use of fuzzy numbers. Then, the FAN network based on inference rules is constructed. And finally, the network is trained or learned by using the fuzzy number training data. The main advantages of the proposed network are the ability for linguistic representation, linguistic aggregation and the learning ability of the neural network.

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