The Research On Credit Risks Evaluation Based On Structure Equation Model For Merchants

Merchant credit risk evaluation and decision system is a, customer credit risk decision-making evaluation system.It reflects the repayment of liquidity and the will of paying. Fourther, it reflects character, capacity, capital, callteral and condition which is generally accepted by financial circles as 5C.It includes the credit risk evaluation indicator system of microcredit for merchants and the decision-making evaluation system of microcredit for merchants.This paper is divided into five parts.The first chapter is the introduction. This part illstrates the chatacter of microcredit discusses the current status of microcredit and the problems of existing research. The second chapter is principles and procedures of evaluation index system established. The third chapter describes principles and procedures of credit evaluation equation and grade classification. The forth chapter is the empirical reseach of 2 157 customers, constructs the merchant credit credit evaluation system, develops the lending decision. The major work of this paper is as follows:(1)The decision-making evaluation system of microcredit for merchants is built. Delete indicators with partial correlation analysis to avoid indicators reflecting duplicate information. Delete indicators with little impact to evaluating result in criteria layers by structure equation model to ensure the selected indicators can significantly distinguish between non-default and default customers.Finally this paper constructed the credit risks evaluation and decision system of microcredit for merchants.(2) This paper establishes micro-credit customer credit risk assessment model by fisher model.Through empirical reseach of 2 157 customers, this paper establishes credit evaluation system, calculates credit score of merchants.Taking order according to credit score, the 2 157 microfinance clients credit rating is divided into nine. At the end, credit lending decision is developed.