Article ID: | iaor20082602 |
Country: | India |
Volume: | 28 |
Issue: | 1 |
Start Page Number: | 111 |
End Page Number: | 128 |
Publication Date: | Jan 2007 |
Journal: | Journal of Information & Optimization Sciences |
Authors: | Lin Tyrone T., Tu Chia-Jung |
Keywords: | Loans |
This study designs optimal loan quality models for a two-period loan market. Specifically, this work explores whether enterprise and individual provide the guarantees for loan credit and whether financial institution repackages the rights of the loan creditor to issue financial asset securitization products to assess the upper (maximum net loan profit) and lower (specific net loan profit) bounds of optimal loan quality. This proposed model can facilitate optimal decision making regarding loan qualities based on financial institution operating performance.