A comprehensive method for credit risk assessment of small and medium-sized enterprises based on Asian data

Naoyuki Yoshino, Farhad Taghi Zadeh Hesary

研究成果: Chapter

1 引用 (Scopus)

抜粋

Due to the asymmetry of information between borrowers that are small and medium-sized enterprises (SMEs) and lenders (banks), many banks consider this sector to be risky. It is crucial for banks to be able to distinguish healthy companies from risky ones in order to reduce their nonperforming assets in the SME sector. If they can do this, lending and financing to SMEs through banks will be easier, with lower collateral requirements and lower interest rates. In this chapter, we provide a scheme originally developed by Yoshino and Taghizadeh-Hesary (2014) for assigning credit ratings to SMEs by employing two statistical analysis techniques - principal component analysis and cluster analysis - using 11 financial ratios of 1,363 SMEs in Asia. If used by financial institutions, this comprehensive and efficient method could enable banks and other lending agencies around the world, especially in Asia, to group SME customers based on financial health, adjust interest rates on loans, and set lending ceilings for each group.

元の言語English
ホスト出版物のタイトルUnlocking SME Finance in Asia
ホスト出版物のサブタイトルRoles of Credit Rating and Credit Guarantee Schemes
出版者Taylor and Francis
ページ55-71
ページ数17
ISBN(電子版)9780429684579
ISBN(印刷物)9781138353428
DOI
出版物ステータスPublished - 2019 1 1

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ASJC Scopus subject areas

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

これを引用

Yoshino, N., & Taghi Zadeh Hesary, F. (2019). A comprehensive method for credit risk assessment of small and medium-sized enterprises based on Asian data. : Unlocking SME Finance in Asia: Roles of Credit Rating and Credit Guarantee Schemes (pp. 55-71). Taylor and Francis. https://doi.org/10.4324/9780429401060-3