A Comparison between Credit Portfolio Management Methods And Steps for Applying in Practice

Nowadays, credit risk management is an essential procedure for lenders and financial institutions to calculate the risk of default. Credit Scoring and Credit Rating are the two main classes of credit risk methods. Credit scoring usually talks about a number as credit treatment of a customer that a bank wants to decide about an appropriate action for his/her/its financial request. On the other hand, since a large number of bank assets are a portfolio of their loans, credit rating methods are the bests in which the bond rating agencies give to bonds to inform investors and the public about the quality of the instrument for investing purposes. In this study five most popular methods that used in credit rating models are discussed, then they compared according to several key factors and at last introduced implicated steps that need attention for applying in real cases.

کلیدواژه ها:

Credit risk ، credit portfolio modeling ، Credit Scoring ، default risk