Azam, Rehan and Muhammad, Danish and Syed Akbar, Suleman (2012): The significance of socioeconomic factors on personal loan decision a study of consumer banking local private banks in Pakistan.
Download (267kB) | Preview
This paper explores the influences of the approved results of loans cases, the loan applicants’ socioeconomic attributes in the decision of perusal loan. The results can improve the credit quality and avoid the misjudgment of screening personal loan customers and also establish a better personal loan risk management forecasting model. The main purpose of the present paper was to evaluate significance of loan applicant socioeconomic attributes on personal loan decision in the local private commercial banks of Pakistan. The statistical techniques, descriptive and logistic regression were used. The model identified that out of six independent variables, region, residence status and year with the current organization have significant impact on personal loan decision.
|Item Type:||MPRA Paper|
|Original Title:||The significance of socioeconomic factors on personal loan decision a study of consumer banking local private banks in Pakistan|
|English Title:||The significance of socioeconomic factors on personal loan decision a study of consumer banking local private banks in Pakistan|
|Keywords:||personal loan; socioeconomic; consumer banking; logistic regression model|
|Subjects:||H - Public Economics > H8 - Miscellaneous Issues
L - Industrial Organization > L8 - Industry Studies: Services > L84 - Personal, Professional, and Business Services
K - Law and Economics > K3 - Other Substantive Areas of Law > K35 - Personal Bankruptcy Law
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies
D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Personal Finance
I - Health, Education, and Welfare > I2 - Education and Research Insititutions > I22 - Educational Finance
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice; Clubs; Committees; Associations
D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
G - Financial Economics > G2 - Financial Institutions and Services
A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values
H - Public Economics > H8 - Miscellaneous Issues > H81 - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
K - Law and Economics > K3 - Other Substantive Areas of Law > K36 - Family and Personal Law
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Rehan Azam|
|Date Deposited:||01. Nov 2012 05:38|
|Last Modified:||13. Feb 2013 14:24|
Attanasio, O. P., Goldberg, P. K., & Kyriazidou, E. (2008). Credit constraints in the market for consumer durables: Evidence from micro data on car loans. International Economic Review, 49(2), 401-436.
Boyle, M., J. N. Crook, R. Hamilton, and L. C. Thomas (1992), Methods for credit scoring applied to slow payers. In; Thomas, L. C., Crook, J. N., Edelman, D. B. (Eds), “Credit scoring and credit control”, Oxford University Press, Oxford, Pg 75-90.
Caouette, J.B., E.I. Altman, and P. Narayanan. (1998). Managing Credit Risk: The Next Grea Financial Challenge. New York: John Wiley & Sons Inc.
Caselli, S., Gatti, S., & Querci, F. (2008). The sensitivity of the loss given default rate to systematic risk: New empirical evidence on bank loans. Journal of Financial Services Research, 34(1), 1-34. Coval, J., T. Shumway (2000). “Do behavioural biases affect prices?” University of Michigan, Working Paper. Hand, D.J., & W.E. Henley. 1997. Statistical Classification Methods in Consumer Credit Scoring: A Review. Journal of the Royal Statistical Society: Series A (Statistics in Society), 160: 523-541.
Holmes, J., Isham, J., Petersen, R., & Sommers, P. M. (2007). Does relationship lending still matter in the consumer banking sector? Evidence from the automobile loan market. Social Science Quarterly, 88(2), 585-597.
Steenackers, A., & Goovaerts, M. J. (1989). A credit scoring model for personal loans. Insurance Mathematics Economics, 8(1), 31-34.
Tor, J., & Kasper, R. (2003). Bank lending policy, credit scoring and value-at-risk. Journal Banking and Finance, 27(4), 615-633.