CREDIT RISK MODELLING: A STUDY OF THE SEGMENT OF INDIVIDUALS IN A RETAIL BANK

Abstract

A variety of statistical models of probability has been developed by financial institutions in the last decades. However, most times these models are specific to analyzing the credit of companies. Differently from the corporation segment, the segment of individuals is very homogeneous from a financial point of view. In other words, this segment has few financial indicators to be analyzed. The main differences among bank customers in the segment of individuals have to do with their behavior. The functionality of the multivariate statistical models applied to credit management for individuals in Brazil is not yet fully known. This article proposes, thus, to fulfill an existing gap in the Brazilian academic environment regarding management models and credit granting for individuals. The findings of this research indicate that the multivariate models can be efficient tools in managing bank credit for individuals in Brazil.