Credit Score Application and Barriers Faced by Banks in the Credit Sector in Albania PDF Download
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Author: Valbona Çinaj
Publisher: GRIN Verlag
ISBN: 366856003X
Category : Business & Economics
Languages : en
Pages : 77
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Book Description
Document from the year 2017 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, , language: English, abstract: 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.
Author: Valbona Çinaj
Publisher: GRIN Verlag
ISBN: 366856003X
Category : Business & Economics
Languages : en
Pages : 77
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Book Description
Document from the year 2017 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, , language: English, abstract: 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.
Author: Valbona Ribaj Çinaj
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Opportunity International's mission is to provide opportunities for people in chronic poverty to transform their lives. Credit scoring measures risk and shed light on the financial implications of the depth of poverty outreach. Managers then take this information, along with their organization's mission and poverty-targeting criteria, and set loan terms and cut-offs that will allow them to have the greatest sustainable impact in their context. Human leadership, not the scorecard, makes the determination to move up-market or target a poorer population. And because scorecards are based on historical information, the attributes of clients served in the past serve as the benchmark for assessing future clients. Scorecards can also signal when a client would be over-indebted by a microfinance loan--protecting members of the poorest population who would have been better off if they had not received the loan. Lenders experience positive net revenue impacts from lending if they increase the classification power of their credit scoring systems. If loan officers' subjective assessments of otherwise intangible borrower characteristics contain additional information about a borrower, a lender may improve the default forecast quality of his internal credit scoring systems by utilizing this subjective information. The Basel II regulatory framework requires lenders to use all available information about a borrower, both subjective and non subjective, but at the same time produce consistent and objectified borrower ratings. However, soft information is often laden with inconsistencies due to the lack of comparability of different raters' assessments and the existence of incentives to manipulate the soft rating.
Author: El Bachir Boukherouaa
Publisher: International Monetary Fund
ISBN: 1589063953
Category : Business & Economics
Languages : en
Pages : 35
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Book Description
This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
ISBN: 1484339061
Category : Business & Economics
Languages : en
Pages : 95
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This paper discusses the Financial System Stability Assessment report on Albania. The IMF report states that the Albanian economy is weak, macroeconomic imbalances are large, and the financial sector faces several risks. Capital-to-asset ratios are sizable, but banks hold large amounts of government bonds that expose banks to sizeable losses in case of a sovereign debt re-pricing and balance sheets have deteriorated as a result of a rapid increase of nonperforming loans (NPLs). The authorities have taken steps to reduce the existing stock of NPLs with technical assistance from the World Bank.
Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814414
Category : Business & Economics
Languages : en
Pages : 241
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Book Description
Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.
Author: Asli Demirguc-Kunt
Publisher: World Bank Publications
ISBN: 1464812683
Category : Business & Economics
Languages : en
Pages : 228
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Book Description
In 2011 the World Bank—with funding from the Bill and Melinda Gates Foundation—launched the Global Findex database, the world's most comprehensive data set on how adults save, borrow, make payments, and manage risk. Drawing on survey data collected in collaboration with Gallup, Inc., the Global Findex database covers more than 140 economies around the world. The initial survey round was followed by a second one in 2014 and by a third in 2017. Compiled using nationally representative surveys of more than 150,000 adults age 15 and above in over 140 economies, The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution includes updated indicators on access to and use of formal and informal financial services. It has additional data on the use of financial technology (or fintech), including the use of mobile phones and the Internet to conduct financial transactions. The data reveal opportunities to expand access to financial services among people who do not have an account—the unbanked—as well as to promote greater use of digital financial services among those who do have an account. The Global Findex database has become a mainstay of global efforts to promote financial inclusion. In addition to being widely cited by scholars and development practitioners, Global Findex data are used to track progress toward the World Bank goal of Universal Financial Access by 2020 and the United Nations Sustainable Development Goals. The database, the full text of the report, and the underlying country-level data for all figures—along with the questionnaire, the survey methodology, and other relevant materials—are available at www.worldbank.org/globalfindex.
Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
ISBN: 1484338332
Category : Business & Economics
Languages : en
Pages : 113
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Book Description
This 2013 Article IV Consultation for Albania focuses on economic developments and policies that have led to weakening and imbalance of the economy. It highlights that high nonperforming loans (NPLs) are constraining credit growth, and weak external drivers are preventing a sustained reduction in external imbalances. Reduction in NPLs would safeguard financial stability and help release credit supply constraints by lowering bank risk aversion. The authorities have requested a three-year arrangement with proposed access equivalent to SDR 295.42 million.
Author: Thorsten Beck
Publisher: World Bank Publications
ISBN:
Category : Banks and banking
Languages : en
Pages : 60
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Book Description
Using information from 193 banks in 58 countries, the authors develop and analyze indicators of physical access, affordability, and eligibility barriers to deposit, loan, and payment services. They find substantial cross-country variation in barriers to banking and show that in many countries these barriers can potentially exclude a significant share of the population from using banking services. Correlations with bank- and country-level variables show that bank size and the availability of physical infrastructure are the most robust predictors of barriers. Further, the authors find evidence that in more competitive, open, and transparent economies, and in countries with better contractual and informational frameworks, banks impose lower barriers. Finally, though foreign banks seem to charge higher fees than other banks, in foreign dominated banking systems fees are lower and it is easier to open bank accounts and to apply for loans. On the other hand, in systems that are predominantly government-owned, customers pay lower fees but also face greater restrictions in terms of where to apply for loans and how long it takes to have applications processed. These findings have important implications for policy reforms to broaden access.
Author: Iraj Hoshi
Publisher: Springer Science & Business Media
ISBN: 1441992340
Category : Business & Economics
Languages : en
Pages : 338
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Book Description
inefficient and uncompetitive enterprises especially from the over-grown industrial sector. These initial conditions meant that, in the early stages of transition, the volume of entries and exits will be, by necessity, very high reflecting the large scale changes that had to take place before these economies attain a macroeconomic structure consistent with their level of development and with the needs of a market-based economy open to internationalcompetition. One of the main elements of the reform programme in all economies in transition was the liberalisation of entry conditions. Along with the liberalisation of prices and foreign trade, appropriate measures facilitating the establishment of new enterprises were approved in the very early phase of reforms in all of these countries. The effectiveness of liberalised entry conditions, of course, depends on the presence of appropriate legal and institutional framework in which new firms will operate. The establishment of a conducive legal and institutional environment, however, takes much longer. In practice, new firms come into existence before the rules of the game are properly established. These rules develop gradually and are not always, and everywhere, consistent with the aim of liberalising the entry conditions. The conditions facing new firms, therefore, have fluctuated in some countries in accordance with changes in the political environment and in line with the strength of different lobbies and interest groups.
Author: OECD
Publisher: OECD Publishing
ISBN: 9264933778
Category :
Languages : en
Pages : 1871
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Book Description
The future sustainable economic development and well-being of citizens in South East Europe depend on greater economic competitiveness. Reinforcing the region’s economic potential in a post-COVID-19 context requires a holistic, inclusive and growth‐oriented approach to policy making.
