Title: Credit risk assessment: a field research

Authors: Prodromos D. Chatzoglou, Ioannis Eleftheriades, Evdokia Tsifora

Addresses: Democritus University of Thrace, Production and Management Engineering Department, Library Building, Kimmeria, 67100 Xanthi, Greece. ' Agricultural Bank of Greece, 25 Sinopis Str., 65404 Kavala, Greece. ' Technological Institute of Larissa, Department of Accounting, National Road Larissa-Trikala, 41110 Larissa, Greece

Abstract: Nowadays banks are faced with an increased level of doubtful debts. This research examines some firm- market- and industry-related factors that can be used to explain the level of doubtful debts. Some moderating factors (type, size and duration of the loan) are also considered. The sample is consisted from 129 credit analysts and branch managers from five of the biggest banks operating in Greece. The results suggest that the use of automated credit assessment tools, very good knowledge of the assessment process and rules, and the implementation of suitable control mechanism can help towards reducing the level of doubtful debts.

Keywords: doubtful debts; regression modelling; Greek banking system; credit risk assessment; Greece; loan type; loan size; loan duration; automated credit assessment.

DOI: 10.1504/IJEPEE.2009.030938

International Journal of Economic Policy in Emerging Economies, 2009 Vol.2 No.4, pp.372 - 390

Published online: 13 Jan 2010 *

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