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Neural nets versus conventional techniques in credit scoring in Egyptian banking

Abdou, HAH, Pointon, J and El-Masry, A 2008, 'Neural nets versus conventional techniques in credit scoring in Egyptian banking' , Expert Systems with Applications, 35 (3) , pp. 1275-1292.

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    Abstract

    Neural nets have become one of the most important tools using in credit scoring. Credit scoring is regarded as a core appraised tool of commercial banks during the last few decades. The purpose of this paper is to investigate the ability of neural nets, such as probabilistic neural nets and multi-layer feed-forward nets, and conventional techniques such as, discriminant analysis, probit analysis and logistic regression, in evaluating credit risk in Egyptian banks applying credit scoring models. The credit scoring task is performed on one bank’s personal loans’ data-set. The results so far revealed that the neural nets-models gave a better average correct classification rate than the other techniques. A one-way analysis of variance and other tests have been applied, demonstrating that there are some significant differences amongst the means of the correct classification rates, pertaining to different techniques.

    Item Type: Article
    Uncontrolled Keywords: Neural nets; Conventional techniques; Banking; Credit scoring
    Themes: Subjects / Themes > H Social Sciences > HG Finance
    Subjects / Themes > H Social Sciences > HA Statistics
    Subjects outside of the University Themes
    Schools: Colleges and Schools > College of Business & Law > Salford Business School > Finance, Accounting and Economics
    Colleges and Schools > College of Business & Law
    Colleges and Schools > College of Business & Law > Salford Business School
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    Journal or Publication Title: Expert Systems with Applications
    Publisher: Elsevier
    Refereed: Yes
    ISSN: 0957-4174
    Depositing User: Dr. Hussein A. Abdou
    Date Deposited: 03 Dec 2009 11:25
    Last Modified: 20 Aug 2013 17:01
    URI: http://usir.salford.ac.uk/id/eprint/2615

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