Consumer Credit Models: Pricing, Profit and Portfolios Book PDF, ePub eBook

Join our eBook service for unlimited books & audiobooks. Get a free 7 day subscription! ↓↓↓↓↓


Book Descriptions:
The use of credit scoring - the quantitative and statistical techniques to assess the credit risks involved in lending to consumers - has been one of the most successful if unsung applications of mathematics in business for the last fifty years. Now with lenders changing their objectives from minimising defaults to maximising profits, the saturation of the consumer credit market allowing borrowers to be more discriminating in their choice of which loans, mortgages
and credit cards to use, and the Basel Accord banking regulations raising the profile of credit scoring within banks there are a number of challenges that require new models that use credit scores as inputs and extensions of the ideas in credit scoring. This book reviews the current methodology and
measures used in credit scoring and then looks at the models that can be used to address these new challenges.

The first chapter describes what a credit score is and how a scorecard is built which gives credit scores and models how the score is used in the lending decision. The second chapter describes the different ways the quality of a scorecard can be measured and points out how some of these measure the discrimination of the score, some the probability prediction of the score, and some the categorical predictions that are made using the score.

The remaining three chapters address how to use risk and response scoring to model the new problems in consumer lending. Chapter three looks at models that assist in deciding how to vary the loan terms made to different potential borrowers depending on their individual characteristics. Risk based pricing is the most common approach being introduced. Chapter four describes how one can use Markov chains and survival analysis to model the dynamics of a borrower's repayment and ordering behaviour .
These models allow one to make decisions that maximise the profitability of the borrower to the lender and can be considered as part of a customer relationship management strategy. The last chapter looks at how the new banking regulations in the Basel Accord apply to consumer lending. It develops
models that show how they will change the operating decisions used in consumer lending and how their need for stress testing requires the development of new models to assess the credit risk of portfolios of consumer loans rather than a models of the credit risks of individual loans.

Consumer Credit Models: Pricing, Profit and Portfolios by Lyn C. Thomas

From reader reviews:

Greta Harty:

Do you have favorite book? For those who have, what is your favorite's book? Publication is very important thing for us to find out everything in the world. Each guide has different aim or perhaps goal; it means that e-book has different type. Some people truly feel enjoy to spend their a chance to read a book. They are reading whatever they have because their hobby is usually reading a book. Think about the person who don't like reading through a book? Sometime, man feel need book when they found difficult problem as well as exercise. Well, probably you will require this Consumer Credit Models: Pricing, Profit and Portfolios.

Brian Dunlap:

The book Consumer Credit Models: Pricing, Profit and Portfolios can give more knowledge and also the precise product information about everything you want. So just why must we leave the great thing like a book Consumer Credit Models: Pricing, Profit and Portfolios? A few of you have a different opinion about publication. But one aim this book can give many info for us. It is absolutely proper. Right now, try to closer with the book. Knowledge or information that you take for that, you can give for each other; you may share all of these. Book Consumer Credit Models: Pricing, Profit and Portfolios has simple shape however you know: it has great and large function for you. You can search the enormous world by start and read a reserve. So it is very wonderful.

Roger Sowa:

This Consumer Credit Models: Pricing, Profit and Portfolios are usually reliable for you who want to become a successful person, why. The reason why of this Consumer Credit Models: Pricing, Profit and Portfolios can be on the list of great books you must have is usually giving you more than just simple looking at food but feed a person with information that probably will shock your prior knowledge. This book is handy, you can bring it almost everywhere and whenever your conditions at e-book and printed ones. Beside that this Consumer Credit Models: Pricing, Profit and Portfolios giving you an enormous of experience for instance rich vocabulary, giving you trial run of critical thinking that we all know it useful in your day activity. So , let's have it and enjoy reading.

Doris Garcia:

This Consumer Credit Models: Pricing, Profit and Portfolios is great e-book for you because the content which is full of information for you who have always deal with world and have to make decision every minute. This book reveal it information accurately using great arrange word or we can say no rambling sentences inside. So if you are read the item hurriedly you can have whole data in it. Doesn't mean it only will give you straight forward sentences but hard core information with wonderful delivering sentences. Having Consumer Credit Models: Pricing, Profit and Portfolios in your hand like having the world in your arm, details in it is not ridiculous just one. We can say that no reserve that offer you world in ten or fifteen minute right but this book already do that. So , this really is good reading book. Heya Mr. and Mrs. hectic do you still doubt which?