This paper presents the effects that affect the current effect of the Credit Information System (CIS) in the Albanian reality in order to reduce credit installment delays during the credit cycle in the banking sector in Albania. There are a number of problems with bad credit for borrowers, as well as debts on lenders.
From a lender's performance analysis one of the main causes is the lack of information exchange in the lending market. Also, the credit information system acts as a mediator and regulator of asymmetric information and also to increase transparency in the lending market. In the interest of all stakeholders in Albania (financial institutions, supervisory institutions, government, consumers, etc.) towards financial stability and economic growth in Albania, CIS becomes increasingly necessary towards the consolidation and maintenance of a sound and sound financial system.
Credit scoring as a product of CIS through the application of data mining techniques is a growing trend. The decision tree, basic classification rules, expert systems, and any other techniques obtained outside the mini graph techniques and various hybrid combinations are usable and welcome in the scoring industry in the banking sector due to their explicit acceptance / rejection conditions of applicants. Selected literature addresses the challenges faced by banks' lending practices and the role of the Credit Information System (CIS). The growth in demand for loans has led to the need for more formal and more objective methods (generally known as credit scoring) to help credit providers decide whether to grant loans to a borrower, through technology advancement Computer and exponential database growth.
In some research it is noted that based on information from some countries around the globe, it is concluded that the existence of credit registers is linked to increased lending volume, lending to business, improved access to finance and a more stable banking sector. The same situation is also presented for Albania, according to this paper.
Inhaltsverzeichnis (Table of Contents)
- Credit Information System in Albania
- Banking system, credit risk and challenges in today's crises.
- Lending to the Albanian banking system.
- Lending and Credit Information Systems (CIS)
- Credit Registry in Albania and its role
- Importance of using credit information systems
- Theoretical and empirical treatment for CIS..
- The credit information system based on credit scoring models produces credit score ....
- Operation of credit registry in Albania...
- Credit Information Systems, (CIS)
- Credit Information System and Commercial Banks......
- The credit information system should be in continuous development.
- For the effective functioning of credit information systems
- The Value of credit information system
- Theoretical and empirical treatment for CS
- Credit score empirical and deductive
- Credit scoring models and credit information system.......
- Meaning of credit score.
- Credit rating system.………………..\n
- Data processing model
- Steps to be followed for constructing the credit score model (CSM).
- Test Kolmogorov-Smirnov (KS).......
- Results of the predictive model..
- Results obtained from the analysis.
- Conclusions and recommendations.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the effects of the Credit Information System (CIS) on the Albanian banking sector, focusing on how it can contribute to reducing credit installment delays and promoting financial stability.
- The role of credit information systems in managing credit risk.
- The importance of credit scoring models in evaluating borrower creditworthiness.
- The impact of CIS on lending practices and financial market stability.
- The benefits and challenges of implementing a comprehensive credit information system in Albania.
- The potential for using data mining techniques to enhance credit scoring models.
Zusammenfassung der Kapitel (Chapter Summaries)
- Credit Information System in Albania: This chapter introduces the concept of Credit Information System (CIS) and explores its historical development in Albania. It discusses the initial attempts to establish a CIS and the eventual realization of a public credit registry through technical assistance from the IMF.
- Banking system, credit risk and challenges in today's crises.: This chapter examines the challenges faced by banks in managing credit risk, particularly in the context of economic crises. It highlights the importance of information exchange in mitigating lending risk and improving loan repayment rates.
- Lending to the Albanian banking system.: This chapter analyzes the lending practices of the Albanian banking system, discussing the use of soft information and the significance of establishing comprehensive data sources for credit scoring.
- Lending and Credit Information Systems (CIS): This chapter explores the relationship between lending practices and CIS, emphasizing the role of CIS in reducing information asymmetry and promoting transparency in the lending market.
- Credit Registry in Albania and its role: This chapter examines the role of the Credit Registry in Albania, highlighting its contribution to improving credit risk management and facilitating financial stability.
- Importance of using credit information systems: This chapter discusses the benefits of using CIS, emphasizing its ability to improve loan repayment rates, reduce risk, and promote responsible lending practices.
- Theoretical and empirical treatment for CIS..: This chapter delves into the theoretical and empirical aspects of CIS, focusing on the use of credit scoring models and data mining techniques to analyze creditworthiness.
- The credit information system based on credit scoring models produces credit score ....: This chapter explores the application of credit scoring models in the context of CIS, examining how these models can be used to generate credit scores and assess borrower risk.
- Operation of credit registry in Albania...: This chapter describes the operational procedures of the credit registry in Albania, explaining the data collection process, data reporting requirements, and information access protocols.
- Credit Information Systems, (CIS): This chapter provides a comprehensive overview of CIS, including its definition, key components, and potential benefits for both lenders and borrowers.
- Credit Information System and Commercial Banks......: This chapter examines the impact of CIS on commercial banks, discussing how CIS can enhance their risk management capabilities and improve their lending decisions.
- The credit information system should be in continuous development.: This chapter emphasizes the need for continuous development and improvement of CIS, acknowledging the evolving nature of the financial landscape and the importance of staying abreast of new technologies and data sources.
- For the effective functioning of credit information systems: This chapter explores the factors essential for the effective functioning of CIS, including data quality, data privacy, and regulatory frameworks.
- The Value of credit information system: This chapter highlights the value of CIS for stakeholders, including lenders, borrowers, and the broader financial system, emphasizing its contribution to economic growth and financial stability.
- Theoretical and empirical treatment for CS: This chapter delves into the theoretical and empirical aspects of credit scoring, examining its underlying principles, models, and applications.
- Credit score empirical and deductive: This chapter discusses the empirical and deductive approaches to credit scoring, highlighting the use of statistical methods and data analysis techniques to evaluate borrower creditworthiness.
- Credit scoring models and credit information system.......: This chapter explores the relationship between credit scoring models and CIS, explaining how these models are integrated into the CIS infrastructure to generate credit scores and support lending decisions.
- Meaning of credit score.: This chapter defines credit score and explains its significance in assessing borrower creditworthiness, outlining the factors that contribute to a borrower's credit score.
- Credit rating system.………………..\n: This chapter provides an overview of credit rating systems, discussing their role in evaluating the creditworthiness of individuals and organizations, and their impact on borrowing costs.
- Data processing model: This chapter examines the data processing models used in credit scoring, explaining how data is collected, processed, and analyzed to generate credit scores.
- Steps to be followed for constructing the credit score model (CSM).: This chapter outlines the steps involved in constructing a credit score model, emphasizing the importance of data quality, model validation, and ongoing monitoring.
- Test Kolmogorov-Smirnov (KS).......: This chapter discusses the Kolmogorov-Smirnov (KS) test, a statistical tool used to evaluate the performance of credit score models.
- Results of the predictive model..: This chapter presents the results of the predictive model used in the research, illustrating its accuracy and effectiveness in predicting borrower creditworthiness.
- Results obtained from the analysis.: This chapter summarizes the key findings of the analysis, emphasizing the impact of CIS on the Albanian banking sector and its contribution to reducing credit installment delays.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this work are Credit Information System (CIS), Credit Scoring, Credit Risk, Data Mining, and the Albanian banking sector. The research examines the impact of CIS and credit scoring on lending practices, loan repayment rates, and financial stability in Albania.
- Quote paper
- Valbona Çinaj (Author), Rebeka Ribaj (Author), 2017, Credit Score Application and Barriers Faced by Banks in the Credit Sector in Albania, Munich, GRIN Verlag, https://www.grin.com/document/376119
