Bank Credit Risk Control Using Bound Coefficient of Variation

Both risk and credit risk are of paramount importance in bank systems and banks will have to control and decrease risk in order to survive and be financially developed. Different approaches such as variance, discriminant analysis and logistic regression have been used to control and measure such risks, but coefficient of variation bound has not yet been used to measure credit risk. Therefore, in this dissertation, bank risk concentration, capital capability and individual analysis of portfolio loans granted to applicants will be dealt with so that an efficient statistical model and approach with powerful calculational capability of credit risk control can be developed using which banks and financial institutions’ managers will be able to decide sensibly in different situations.