The Discrimination Method and Empirical Research of Individual Credit Risk Based on Bilateral Clustering

Li Shuai, Hui Lai, Chao Xu, Zongfang Zhou

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School of Economics and Management, University of Electronic Science and Technology of China, Chengdu, China.

DOI: 10.4236/me.2013.47049                

Abstract

Individual credit risk evaluation has played an extremely important role in the credit risk management of commercial banks. Firstly, through Logistic regression, this paper selects and determines the clustering factors. Then the bilateral clustering structure is proposed. Based on the clustering structure, we cluster to the test samples, and distinguish the individual credit risk as well. Finally, we use the ROC method to test the proposed model and Logistic regression model. The results of comparison show that the discrimination method of individual credit risk based on bilateral clustering can better identify the risk.

Keywords

Individual Credit Risk; Bilateral Clustering; ROC

Conflicts of Interest

The authors declare no conflicts of interest.

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