University of Macau Library

Author: Patricio, Antonio Pires; Vong, Anna P I
Title: Credit risk assessment in the Macau banking sector
Journal Name: Euro Asia Journal of Management
Pub. Info: Dec. 2005, Vol.15, No.2, pp. 113-124
Abstract: Abstract : Sound credit assessment policies and practices improve the measurement and management of credit risk by differentiating between good and bad loans as well as among the pass loans . For business and institutional loans , the accuracy of default metrics can be improved by using the credit rating, while for personal loans, credit scoring has been employed both to shorten the approval time and to increase efficiency. This paper will explore the credit analysis techniques, including credit scoring and credit rating, used in the Macau banking sector. Paragraph Headings: 1. Introduction 2. Interature review 2.1. Credit analysis 2.2. Credit scoring 2.3. Credit rating 3. Data and methodology 4. Results 4.1. Credit scoring 4.2. Credit rating 4.3. Number of pass grades on the scale 4.4. Credit rosk mitigation 5. Conclusion Tables: 1. Risk structure for banks with 9 and 7-grade rating systems