Construction And Application About The PCA-GTD Model Of Commercial Bank Personal Credit Decision

Commercial bank credit is a main channel to gain benefit for commercial bank, which could obtain the interest income by the lending relationship with individual and enterprises in the market. During the process, there are kinds of risk for market and parties changing which risk could contagious and transfer to bank market and other financial market. Just for that, the nature of commercial banks operation is a risk assessment and decision making process. Therefore, the rationality and scientific about credit evaluation and decision are very important to commercial bank.It will be a practical significance thing for the method about assessment and decision of commercial bank personal credit risk, in this era of increasing competition and environment intricate after financial crisis. From the macroscopic analysis, this way about assessment and decision of commercial bank personal credit risk is useful to control risk of bank, reduce the bad credit asset scaling, improve the overall benefits, so as to ensure the stable operation of the national economy. From the microscopic analysis, Nanjing Branch of Minsheng Bank as the best bank in individual credit, the key way is reduces risk and control defaults in how to improve income of individual credit in this limit market share. Then, it will be a problem of assessment and decision in commercial bank personal credit and a mainly content in this paper. Paper is divided into four parts, as:In the first part, comprehensive evaluation and decision of personal credit banks were introduced, research relevant background and significance were described, and a literature review was made by analysis these comprehensive evaluation and decision literatures at home and abroad. Then, some researches methods during the research process, content and technical line of this study, and possible innovations in this paper were given out.In the second part, some concepts about bank risk and personal credit were given. First, ten types bank risk concepts were put out. Then, some reasons about personal credit risk were given by author analyzed with actual experience. Finally, the article detailed analysis some methods and models about individual credit risk for commercial banks. The above analysis could provide theoretical basis for this paper in further study.In the third part, the principal component analysis and decision model of gray target were given. The PAC-GTD integrated decision making model was constructed. For comprehensive assessment, the section also build a personal credit evaluation index system, and compare the principal component analysis and gray target decision model including their advantages and disadvantages, which are basic to built the PAC-GTD integrated decision making model. Of course, the actual using steps were given out to use this new model in process of Personal credit decision for bank and other financial company.In the fourth part, the basic situation of Min-sheng Bank and its Nanjing Branch including the decision making process were researched. The empirical analysis was researched by combining this new constructed PCA-GTD model and actual data in the bank. During the empirical, the targets are eight housing loan applicant in Nanjing branch of Ming-sheng bank in march. First, the source of samples, evaluation index processing methods and treatment results were analyzed. Then, the target customer, principal components and principal components weight were got by the principal component analysis for the GTD model. The standard risk classification was put out to make some loan decisions. Finally, we used these 8 customers material and PCA-GTD comprehensive evaluation model to empirical and analyze. The result proved the feasibility and applicability of the model.