Establishment of the credit risk database

Concrete use to evaluate the creditworthiness of SMEs

Satoshi Kuwahara, Naoyuki Yoshino, Megumi Sagara, Farhad Taghi Zadeh Hesary

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

A credit risk database (CRD) makes it possible to mitigate the problem of information asymmetry between SMEs and financial institutions and contributes to improving SMEs’ access to finance by collecting a large number of financial statements through the mechanism of SME finances and establishing a robust statistical model. In this chapter, we use the CRD in Japan, confirm the situation in Japan, and highlight the CRD’s contribution to evaluating the creditworthiness of SMEs. We also explain how to establish the CRD as a financial infrastructure, while indicating that the CRD and the scoring model based on it have maintained their quality due to their operating system. We hope our experience contributes to the introduction of a statistical CRD composed of a large number of anonymous financial statement data in other countries and that the CRD helps improve SMEs’ access to finance as a financial infrastructure.

Original languageEnglish
Title of host publicationUnlocking SME Finance in Asia
Subtitle of host publicationRoles of Credit Rating and Credit Guarantee Schemes
PublisherTaylor and Francis
Pages89-111
Number of pages23
ISBN (Electronic)9780429684579
ISBN (Print)9781138353428
DOIs
Publication statusPublished - 2019 Jan 1

Fingerprint

Small and medium-sized enterprises
Data base
Credit risk
Creditworthiness
Financial statements
Japan
Access to finance
Financial institutions
Finance
Statistical model
Asymmetry of information
Scoring

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Cite this

Kuwahara, S., Yoshino, N., Sagara, M., & Taghi Zadeh Hesary, F. (2019). Establishment of the credit risk database: Concrete use to evaluate the creditworthiness of SMEs. In Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes (pp. 89-111). Taylor and Francis. https://doi.org/10.4324/9780429401060-5

Establishment of the credit risk database : Concrete use to evaluate the creditworthiness of SMEs. / Kuwahara, Satoshi; Yoshino, Naoyuki; Sagara, Megumi; Taghi Zadeh Hesary, Farhad.

Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes. Taylor and Francis, 2019. p. 89-111.

Research output: Chapter in Book/Report/Conference proceedingChapter

Kuwahara, S, Yoshino, N, Sagara, M & Taghi Zadeh Hesary, F 2019, Establishment of the credit risk database: Concrete use to evaluate the creditworthiness of SMEs. in Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes. Taylor and Francis, pp. 89-111. https://doi.org/10.4324/9780429401060-5
Kuwahara S, Yoshino N, Sagara M, Taghi Zadeh Hesary F. Establishment of the credit risk database: Concrete use to evaluate the creditworthiness of SMEs. In Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes. Taylor and Francis. 2019. p. 89-111 https://doi.org/10.4324/9780429401060-5
Kuwahara, Satoshi ; Yoshino, Naoyuki ; Sagara, Megumi ; Taghi Zadeh Hesary, Farhad. / Establishment of the credit risk database : Concrete use to evaluate the creditworthiness of SMEs. Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes. Taylor and Francis, 2019. pp. 89-111
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