Search

In order to develop the present article, we selected a transport entity listed on the Bucharest Stock Exchange and financially diagnosed over three consecutive years, from 2018 to 2020, through structural ratios, creditworthiness indicators (liquidity and solvency) and, last but not least, financial balance indicators.

Creditworthiness assessment was one of the first areas to apply machine learning techniques in economics. The creditworthiness of retrofit protection was vital for ESCO in determining the credit scoring. This study aimed to develop a retrofitting assessment model to utilize machine learning with multinomial logistic (MNL) and life cycle cost analysis (LCCA). This study aims to provide an evaluation of creditworthiness models from the evaluation of financing alternative in Indonesia's energy efficiency industry. The goal was to reduce the total of prediction error, which comprised bias, variance, and fundamental error. The findings demonstrated that machine learning approaches might yield significantly greater prediction accuracy. In addition, machine learning is also expected to automatically capture the nonlinear relationship between input features and selected results. This study is also expected to draw on ideas from machine learning to develop an enhanced model for retrofitting creditworthiness research and suggest new research directions.

This study examines why split bond ratings occur between credit rating agencies with different reputations in Japan. Using a sample of Japanese corporate bonds newly issued during the 2006–2021 period, I find that the ratings assigned by a less reputable Japanese rating agency (JCR) are significantly higher than those by a more reputable Japanese rating agency (R&I) for the same bonds because JCR is likely to rate the creditworthiness of bond issuers more highly than R&I. The disagreement between JCR and R&I over the creditworthiness of issuers causes split bond ratings. Moreover, bonds with multiple split ratings have higher yield spreads. [Display omitted] • This study examines why split ratings occur between rating agencies in Japan. • The ratings assigned by JCR are higher than those by R&I for the same bonds. • JCR rates the creditworthiness of issuers more highly than R&I. • The disagreement about the creditworthiness of issuers causes split ratings. • Bonds with multiple split ratings have higher yield spreads. [ABSTRACT FROM AUTHOR]

Copyright of Ruch Prawniczy, Ekonomiczny i Socjologiczny (0035-9629) is the property of Adam Mickiewicz University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Approval of credit lending to cooperative members without proper feasibility analysis can cause credit problems, cooperatives such as late payment of installments, and an increase in bad credit which can threaten the survival of the cooperative as a provider of lending services. As a solution to minimize the creditworthiness assessment errors for loan funds, research is carried out to analyze the feasibility of loan funds from the data of cooperative members using the data mining method approach and the algorithm used using the K-Nearest Neighbor. The purpose of this research is to predict the feasibility of granting credit with the right decision and to find out the level of evaluation, accuracy, and validation of the effectiveness of the k-NN algorithm on processing creditworthiness application data classifications. After the prediction research was carried out, the data on the eligibility of credit lending applications were conducted at the Bakti Berkah Sukaraja Savings and Loan Cooperative, The data obtained from the accuracy value of the k-nearest neighbor algorithm before being validated has an accuracy of 87.78% with AUC 0.95, after validation with split validation the accuracy decreased slightly by 2% to be 85.71%, while the AUC value in the ROC Curve was 0.836%. Even though there was a decline, it can still be categorized as a good classification. The impact of this research is that besides the accuracy of the k-NN algorithm being validated, the Bakti Berkah Sukaraja Savings and Loan cooperative can predict the feasibility of applying for credit funds, as an effort to reduce the threat of bad credit risk

Credit rating agencies have a significant impact on reducing asymmetric information between lenders and borrowers. The purpose of this paper is to provide a comprehensive analysis of the role of credit rating agencies in the capital market, how to play this role and the effects of these institutions on the economy. For this purpose, using a library-based method, the first step is to review the research background in this field. Then, by presenting the historical development of rating agencies and the concept of credit ratings, and evaluating the need for these institutions, we focused on the general realms of influencing credit rating agencies on the economy. These areas included domestic and foreign investment, market efficiencies, corporate competition, economic justice, and meritocracy. in section 5, we examined how these institutions influence the economy. In addition, with respect to concepts like asymmetric information and transparency, the impact of credit rating agencies on these two subjects was discussed, and finally the conclusion was presented. The results show that with the existence of credit rating agencies, because of the reduction of asymmetric information and the ease of analyzing the creditworthiness, investing will be increased, and as a result, we'll see the growth of production, employment, export, and economic welfare.

This article highlights a brief financial diagnosis of a transnational company, defined by visibility, transparency, credibility and performance. At the same time, such a company is characterized by a structural diversity in terms of wealth and performance. Among the aspects considered there is the creditworthiness, which is the sum of the liquidity and the solvency, the profitability, which is a reflection of the financial performance, and also the cash flow as an actual expression of the financial balance and the efficiency of the activity.

Native communities in the United States have been persistently underserved by traditional financial institutions. To fill this gap, in recent years both Native and Non-Native Community Development Financial Institutions (CDFIs) have emerged on or near American Indian reservations. Yet to date, no comprehensive evidence exists on the effect of CDFIs on credit outcomes in Indian Country. We combine a large-scale dataset on individual-level credit bureau records with Census block group-level measures of CDFI activity to explore how the presence of Native and Non Native CDFIs affects Indian Country residents' credit risk scores, a key summary measure of individuals' credit performance and creditworthiness. Using multiple empirical approaches and addressing endogeneity concerns, we uncover a positive association between Native CDFI presence and credit risk scores for the subsample of individuals initially deemed least creditworthy. We do not find consistent evidence of a similar effect due to Non-Native CDFIs. To the extent that CDFIs have indeed causally impacted individuals' credit risk scores, our findings indicate that the corresponding improvements have arisen primarily because of Native, rather than Non-Native, CDFI activity. Our analysis thereby offers the first systematic empirical evidence suggestive of the importance of a cultural fit for credit outcomes in Indian Country. [ABSTRACT FROM AUTHOR]

Copyright of Polish Statistician / Wiadomości Statystyczne is the property of State Treasury - Statistics Poland and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The problem of bad debts leading to default is widespread and not limited to a single country. Failure of a business to repay its creditors may produce a chain reaction of large-scale defaults that can ultimately affect an entire country's banking system. This, in turn, has the potential to spill over to other countries causing a global economic crisis. In order to develop better mechanisms that counter default on credit, there is a need to develop a common understanding of what generally leads to such default. However, there are significant complexities attached to the phenomenon of default due to different manifestations of default and its relationship with other related concepts as well as in terms of the possible classifications of default. These complexities create uncertainties regarding the process of measuring creditworthiness of clients as well as the legal bases to classify default, which consequently affect the performance of banks. Placing the existing banking guidelines in the context of conventional and Islamic principles, this article analyses different ways to establish an integrated mechanism to understand, detect, and prevent default in all its possible forms. The creation of various processes and systems proposed in this article offer the possibility for detection of credit default before it occurs and possible counter-measures during various stages of default to ensure financial safety and solvency of both banks and their clients. [ABSTRACT FROM AUTHOR]

Copyright of Bioeconomics & Agrarian Business / Bìoekonomìka ta Agrarnij Bìznes is the property of National University of Life & Environmental Sciences of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Nowadays enterprise information systems of banks provide modules for calculating creditworthiness of the business. Such systems are complex and it is difficult to maintain and develop them. Moreover, it requires the involvement of large teams. In addition, systems are complicated to change and update in accordance with changes in current legislation. From another point of view, demand for consumer loans is high, and creating a separate module for calculating the creditworthiness of an individual is appropriate in case of increasing the adaptability to changes and updates of the system. Calculating the creditworthiness of an individual is relevant not only for the banking system, but also for other spheres such as logistics and marketing. The work describes the created information system for calculating the creditworthiness of an individual, which calculates the class of the borrower based on data from credit history, credit rating, quality characteristics, financial indicators of the person and characteristics of the credit transaction. The use of the Asp. Net Core platform and the Vue.js framework to build a software module that can be used both independently and easily integrated into other corporate systems is demonstrated. In this work the major steps of designing and developing the system are described. [ABSTRACT FROM AUTHOR]

Recent increase in peer-to-peer lending prompted for development of models to separate good and bad clients to mitigate risks both for lenders and for the platforms. The rapidly increasing body of literature provides several comparisons between various models. Among the most frequently employed ones are logistic regression, Support Vector Machines, neural networks and decision tree-based models. Among them, logistic regression has proved to be a strong candidate both because its good performance and due to its high explainability. The present paper aims to compare four pairs of models (for imbalanced and under-sampled data) meant to predict charged off clients by optimizing F1 score. We found that, if the data is balanced, Logistic Regression, both simple and with Stochastic Gradient Descent, outperforms LightGBM and K-Nearest Neighbors in optimizing F1 score. We chose this metric as it provides balance between the interests of the lenders and those of the platform. Loan term, debt-to-income ratio and number of accounts were found to be important positively related predictors of risk of charge off. At the other end of the spectrum, by far the strongest impact on charge off probability is that of the FICO score. The final number of features retained by the two models differs very much, because, although both models use Lasso for feature selection, Stochastic Gradient Descent Logistic Regression uses a stronger regularization. The analysis was performed using Python (numpy, pandas, sklearn and imblearn).

The article is aimed at developing a methodical approach to the integral assessment of the financial status of communal enterprises using the multidimensional statistical analysis method, since a comprehensive assessment of the activities of communal enterprises in the industry, which top the rating, will allow to use their achievements to solve the problems of enterprises-outsiders. It is concluded that the methods of calculating integral indicators presented in the Regulations developed by the NBU and the Ministry of Finance of Ukraine do not adequately reflect the true financial status and level of creditworthiness of enterprises. An approach to the integral assessment of the financial status is proposed, which involves building up a model of an integral index of the financial status of the enterprise; introduction and improvement of the information system for monitoring the financial-economic activities of enterprise; organization of a continuous comprehensive assessment and monitoring the main indicators that characterize the enterprise’s financial potential. The main stages of building up an integral index model using the main component method are described. An integral index, which characterizes the financial status of communal enterprises, is calculated and an industry rating of water supplying communal enterprises is compiled, allowing to respond in a timely manner to the deterioration of financial potential in the development of anti-crisis management solutions for enterprises-outsiders. Further research suggests improving the model through repeated testing for communal enterprises in various industries. This will allow to determine the final set of indicators to form the integral index.

Municipal bonds are an option available to many cities to raise long-term financing to finance the infrastructure projects. This study aims to develop and find local measures of creditworthiness that are suitable and applicable for local government units in Palestine. Different variables are recognized to see the effect on the issuance of municipal bonds, macroeconomic variables measured by revenues and expenditures per capita, cost of capital, and unemployment rate. Municipal status variables have subgroup variables of municipality size, financial reporting quality, outstanding debt, and financial distress. Various financial ratios, comparative and cross-sectional analysis, horizontal and vertical analysis were used. These ratios and analysis have been used to determine the municipal status variable. The results of the study were limited to the largest 11 sample municipalities; each is the central local government unit at the governorates and was not generalized for all municipalities in Palestine. The study found that macroeconomic and municipality status affects the issuance of municipal revenue bonds. Based on the study results, municipal bonds are highly recommended. Also, instructions from the Ministry of Local Government need to be established and to enforce municipalities about the declaration date of publishing audited financial statements.

Currently in the domestic economy, a significant role is played by bank lending, which provides commercial organizations with the means to expand and develop their business. Crediting is the basis of the bank’s activity, its main income item. Lending contributes to increasing the economic potential of organizations, accelerating the turnover of resources. Thus, lending to legal entities contributes to the economic growth of the whole country.

Copyright of Financial Space is the property of Cherkasy Institute of Banking, University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article considered the problem of determining the creditworthiness of an enterprise operating in the field of trade and services. The assessment of the creditworthiness of borrowers, particularly small businesses, needs to be more careful: the level of development of small enterprises and their specific activities must be considered, as well as the uncertainty in obtaining any financial result. A method for assessing the creditworthiness of enterprises (trade and services) is proposed, based on the use of the mathematical apparatus of the theory of fuzzy sets. This article analyzes the indicators of industry and regional specifics, indicators of the activity of a small enterprise, and financial and economic indicators typical for the service sector and trade. The rules on the basis of which decisions are made are formed in the form of logical formulas containing parameters. In its most general form, one parameter is predicted, called the creditworthiness index, which varies from 0 to 1 and has a natural interpretation. On the basis of the proposed method, examples of calculating the assessment of the creditworthiness of enterprises operating in the field of trade and services are given. The proposed scientific approach can be used as a basis for creating expert decision support systems for lending to small businesses.

The main issue for all creditors in the Republic of Uzbekistan is how to effectively lend to companies with an adequate increase of the rate of return. Specifically, commercial banks use traditional credit analysis methods, which are very slow, expensive and straightforward, or use one of the world's most developed models for assessing a company's creditworthiness, which is still not adapted to the characteristics and performance of the company national business ventures. From a professional and practical standpoint, it is emphasized that the models for assessing a company's creditworthiness developed for the individual market give significantly better results than other "standardized models". It represents the basic assumption of this research. The financial statements of national companies, together with their analytical indicators, in the best way, reflect their characteristics. As such, they are the basis for developing a model for assessing companies' creditworthiness, which is the main goal of the research. The hypothesis of the paper is "Respecting the characteristics of national companies and current procedures of creditworthiness assessment. It is possible to develop a creditworthiness analysis model for the Republic of Uzbekistan that will be more efficient than generally known models". The result of the research is a model that can be practically applied, which contributes to increased efficiency in decision making, which can meet the requirements of the digital economy. [ABSTRACT FROM AUTHOR]

The actual scientific research of development of information models of representation of fuzzy knowledge at an estimation of creditworthiness of the enterprises of the coal industry of Ukraine and perfection of a fuzzy mathematical model of an estimation of creditworthiness of the enterprises is carried out. Based on settheoretic analysis, a set of 11 criteria for assessing the creditworthiness of enterprises is formed and divided into 3 groups: indicators of financial stability, analysis of profits and losses, the efficiency of enterprise management. A membership function is constructed for each criterion, which will reveal the uncertainty in the input data, leading to a normalized form for comparison. To construct membership functions, a study was conducted to determine their type and type, as well as the parameters of membership functions based on the experience of credit experts and data sets on indicators, using real financial reports of Ukrainian coal industry enterprises for 2020. The improved fuzzy mathematical model for assessing the creditworthiness of enterprises, which reveals the vagueness of input data, derives the assessment of creditworthiness based on the reasoning of the decision-maker (DM), determines the linguistic level of ability to repay financial obligations on time. Based on the built model, a general six-step algorithm is constructed, which can be quickly implemented in the software product. The developed information model and the improved fuzzy mathematical model were tested on real data of credit assessment of the Lvivugol State Enterprise of Ukraine. Outcome, models, and approaches to presenting fuzzy knowledge for indicators of creditworthiness assessment of Ukrainian coal industry enterprises, which will be a model for other countries to follow. [ABSTRACT FROM AUTHOR]

The article shows the methods of evaluating and analyzing creditworthiness of entities have been discussed. Current order of creditworthiness and its improvement in case of Uzbekistan have been accomplished. Adopting of complex analysis in credit scoring model of creditworthiness valuation and its advantages have been proved in case of LLC. Theoretical and practical proposals on solving current shortcomings of evaluating creditworthiness by developing complex analysis have been described. [ABSTRACT FROM AUTHOR]

• We present a new method to explore the contagion mechanism among the same bank customers. • We detect the presence of critical clients for the propagation of external shocks. • This is useful in improving the information set in assessing customers' creditworthiness. • Our method is based on a weighted, directed complex network. • We employ, as an example, a unique dataset that considers customers' mutual transactions. The analysis of monetary flows' correlation resulting from clients' mutual transactions is crucial for small/local banks in assessing customers' creditworthiness. This paper offers a new method based on a complex network (customers are the nodes and their mutual financial flows the links). We detect the presence of vulnerable and dangerous clients within the contagion and propagation of external shocks mechanisms and exploit the informative content of the in- and out-paths of the network, with specific reference to those associated with the geodesic patterns. We test the model over a high-quality dataset referred to 2021. The results might support banks' customers' creditworthiness analysis. [ABSTRACT FROM AUTHOR]

Finance and indebtedness remain major problems for most countries, especially developing countries it therefore requests to stand in front of them to reduce them and prevent their exacerbation, Global rating agencies are a reflection of the urgent need for investors and borrowers to identify factors affecting creditworthiness to bridge the existing information gap. Iraq was approved for the period 2004-2017 using a model (Toda Yamamota Causility) The desire to provide information on the level of risk before lending to the government or financial and banking institutions to assess the solvency and the desire to meet debts to meet current and future financial obligations in a timely manner, and the degree of rating is not an absolute fact, but expect to the current financial situation may err and may infect, However, creditworthiness indicators remain the most important criteria for assessing the likelihood of the borrower not repaying the loan amount. The researcher concluded that the most important variable affecting the sovereign creditworthiness of Iraq is debt service, especially in the short term On the other hand, the availability of liquidity gives great flexibility to Iraq in the payment of its obligations.

The article is devoted to the development of the methodology for assessing the creditworthiness of exporting enterprises based on the fuzzy logic method. The author studies the dominant foreign methods of creditworthiness complex analysis of potential bank borrowers. On its basis the stages of rapid analysis and the basic factors determining the creditworthiness of potential borrowers of the bank, the main for which are export activity, are distinguished. These factors include: FEA factor (term of export activity, share of profit from FEA in operating profit of enterprise, dynamics of profitable activity from FEA), borrower’s reputation (quality of management), borrower's financial condition (profit activity, solvency, net cash flow), loan collateralization (type and possibility of realization of collateral, method of credit risk insurance), loan repayment ability (essential terms of the loan agreement: purpose, term, loan amount, interest rate and fees, etc.). These factors allowed to create a model, the feature of which is the use of expert and analytical information to predict the level of creditworthiness of potential bank borrowers, the main one for which is export activity. The output parameter Z obtained in the model makes it possible to assess the creditworthiness of the exporting borrower as following: H - high level of creditworthiness, A – average (acceptable) creditworthiness, L – low level of creditworthiness. The loan officers must reject the borrower’s loan application in the case of obtaining a low level of creditworthiness during the express analysis. In case of assigning an average or high level of creditworthiness, a further in-depth analysis of the borrower’s creditworthiness is required. The use of express analysis makes it possible to avoid the loss of time and other resources for a detailed analysis of the creditworthiness of potentially insolvent borrowers.

The purpose of the article is to reveal the peculiarities of a comprehensive analysis of the financial sustainability of a production enterprise, namely that which could become the basis of optimization decisions. It has been determined that according to traditional approaches to the analysis of financial stability, an entity is not able to assess its available reserves for development, under conditions of acceptable level of risk (that is, with the provision of an optimal level of financial stability). In the article the features of complex analysis of the financial stability of a production enterprise have been disclosed, namely, that which can become the basis of optimization decisions. The outline is achieved at the expense of the following research tasks: the definition of the variables that contribute to the complex analysis of the financial sustainability of the production enterprise; characteristic of changing properties of the internal state of financial stability of the enterprise and the peculiarities of their analysis. The author's approach is to provide requirements for the complex analysis of the financial stability of a production enterprise based on the use of its variables, namely: solvency, creditworthiness, financial resources. In the study, coefficient methods and methods of balance-sheet agreement, within the organization of data processing and the comparison of systems interrelated variables of the properties of financial sustainability of the enterprise have been applied. According to the results, it has been proved that the ball form of concretization of variables in the analysis of financial stability quite effectively summarizes the results concerning: the limits of the use of liquid assets; conditions that determine the financial capacity of the entity; level of provision of assets and liabilities. This approach distinguishes the possibility of compiling a portrait of financial sustainability of the enterprise, as an abstract description of its main properties. The practical significance of the results lies in the possibility of their use for the development of optimization solutions, the formation of a forecast scenario of optimization (within the formalization of the target function of the process of optimization changes). Further research will be aimed at adapting the results of the research to the practical activities of manufacturing enterprises in the region

Today, the main source of economic growth is the extraction of mineral oil, although in recent years there has been a significant increase in the role of consumer demand in the domestic market. In the con-text of globalization, the main indicator of the economy of oil-producing countries is oil prices. However, in a period of globalization, developing countries need not only energy, but also economic resources to develop their economic situation on the global market. Thus, establishing creditworthiness is the key to attracting foreign capital. The development of the stock market is not an indicator of the country’s stable creditworthiness. This study fills the required gap, verifying with the extent to which the development of the stock market can affect creditworthiness. Moreover, the following article has strong literature review in order to identify and summarize the main factors of the creditworthiness of oil-producing countries. Although, there is not strong empirical research, the study is based on the statistical world data.

The article analyzes the current state of the credit portfolio of domestic banks in the context of introduction of new approaches of the National Bank to assess the financial status of the debtor – a legal entity. Ukraine implements the recommendations of the Basel Committee on Banking Supervision on Credit Risk Assessment, which recommends banks to develop their own internal models in order to properly assess their clients. However, the National Bank of Ukraine has chosen another concept for the settlement of this recommendation, in particular, it developed and obliged all domestic banks to use their own methodology for assessing the level of credit risk based on a specific econometric model. Even before the full implementation of the methodology of the National Bank in practice of domestic banks, it was critically evaluated by domestic scientists with the details of deficiencies. The conducted study allowed to analyze the relationship between the introduction of the new NBU methodology for assessing the level of credit risk on corporate loans and changes in the share of non-performing loans in loan portfolios of Ukrainian banks. The obtained results confirmed the low effectiveness of the NBU methodology for identifying insolvent borrowers, as in the background of the growth of lending to legal entities in 2018, the share of non-performing loans was almost unchanged, or insignificantly, indicating that the newly issued loans subsequently went to the category of unemployed. The study summarizes the shortcomings of the current methodology and proposes to differentiate the approaches of banks to assessing the level of credit risk, namely, to allow banks with a long-term functioning in the market to develop and approve in the NBU their own methods for assessing the level of credit risk of the borrower, and for newly created banks – to use the methodology of the NBU until the moment of accumulation of the necessary experience to develop their own methodology.

The article is devoted to the development of methodology for assessing the level of credit risk of borrowers-legal entities. The authors analysed the current methodology for determining the credit risk size under active banking operations used by Ukrainian banks. By analysing the statistical data on the share of problem loans in the loan portfolios of Ukrainian banks, it was established that the implementation of this methodology did not lead to a significant change in the share of problem loans in the banking system, and, consequently, needs further improvement. The article proposes the development of an approach to credit, which at the methodological level should be expressed through a set of interrelated quantitative and qualitative indicators, which in their unity determine the degree of creditworthiness of a potential borrower. The authors suggest taking into account the factor of foreign economic activity, as having a significant impact on the financial state of the enterprise, when calculating the integral indicator of the financial status of the debtor – a legal entity by including the indicator «the share of operating profit from foreign economic activities to depreciation in the total volume of sales». In addition, in the conditions of stable tendency of hryvnia devaluation, ranges of values of the debtor PD coefficient – the legal entity-exporter is proposed to be taken into account for the minimum values, and the legal entity-importer – for maximum values in determining the size of credit risk on an asset on an individual basis. The submitted offers will allow to adjust the level of credit risk of the borrower-legal entity that carries out foreign economic activity, depending on the importance of its impact on the financial result of the enterprise.

Although banks have been conducting credit lending activities for centuries by using traditional credit risk assessment methods, the scientific art of credit risk management has evolved over the last few years along with the Basel agreement. The risks to which banks are being exposed when they fund societies keen on creative accounting techniques are considerable, the misleading attempts and the "production" of financial statements for a successful image in front of the bank in order to convince with a view to obtaining funding are often common practice. The consequences are particularly severe for the financing institution that will mark losses on the transaction concluded on the basis of these glossed over economic realities. That is why it is very important to look beyond this picture, to compare the image presented by the client with images of other reporting periods in order to identify changes in the accounting records techniques. It is best to understand the film of the last 2 or 3 years to grasp the reality of a society and not just the image that it has been thoroughly prepared to be shown to the bank in order to get credits.

The main issue for all creditors in the Republic of Serbia is how to effectively lend to companies, with adequate increase of rate of return. Namely, domestic creditors are using traditional credit analysis methods, which are very slow and very expensive, or on the other hand using one of the world most developed models for assessing company's creditworthiness, which are still not adapted to the characteristics and performance of domestic companies. It is emphasized from a professional and practical standpoint, that the models for assessing company's creditworthiness developed for individual market, give significantly better results than other "standardized models", and this represents the basic assumption of this research. Financial statements of domestic companies, together with their analytical indicators, in best way reflect their characteristics. As such, they are the basis for developing a model for assessing companies' creditworthiness, which is the main goal of the research. The hypothesis of the paper is "Respecting the characteristics of domestic companies, it is possible to develop a creditworthiness analysis model for the Republic of Serbia, that will be more efficient than generally known models". The result of the research is a model that can be practically applied, which contributes to increasing efficiency in decision making, and which should represent "condition sine qua non" of each lender in Serbia.

The article is devoted to the approaches to analyze the solvency of companies debtors. The system of indicators and ratios is proposed to analyze the financial position of companies debtors.The subject of credit analysis is closely related to the problems of effective management of the company. Thequality of credit analysis depends on how close the relationship between a company and its stakeholders is. Mutually beneficial relationships ensure the control over the quality of products and the pricing process. Building relationships with customers implies the achievement of an acceptable level of customer satisfaction and increases the efficiency of client base management. The key to the success of credit analysis is the initial grouping of companies debtors to identify those objects of analysis relationship which differ from the pattern. The method of analysis of creditworthiness of debtors is presented in two versions: full (integrated) and abridged (express diagnostics). The author proposes to use the complex of measures to control the status of accounts receivable. Managers of the company face the problem of formalizing the debtor analysis procedures, regulating the work with receivables, including the possibility of their adaptation to the internal and external business environment changes.

Objective: The objective of this paper is to verify the hypothesis that there is a statistically significant correlation between the risk level determined on the basis of structural models and the value of the of debt capacity base, and that the value of a company’s debt capacity is determined primarily by the type and properties of its financing. Research Design & Methods: The methodology was based on the analysis of the determination of the linear regression function using the least squares method and study of the correlation between the values of the debt capacity base and the net value of enterprises (determined on the basis of the approach used in structural risk models) based on accounting data of 511 companies listed on the Warsaw Stock Exchange in 2018–2019. This includes an analysis of the level of debt capacity in the context of selected forms of financing. Findings: There is a strong and statistically significant correlation between the debt capacity base determined on the basis of book values and the determined net value of enterprises, representing the level of structural risk (constituting the difference between the value of assets and liabilities). A USD 1 bn change in the average debt capacity base leads to a USD 0.49 bn change in the average net worth of enterprises. Implications / Recommendations: The designated regression function enables forecasting, within the scope of banking practice, the value of the structural risk and the debt capacity base in terms of granting short- and long-term liabilities. Contribution: The study confirms the thesis that there is a statistically significant correlation between structural risk and the debt capacity base. It presents an approach that enables the determination of the debt capacity base, the value of structural risk, and the value of debt capacity for selected forms of financing.

Creditworthiness is acknowledged worldwide as focal point of debt processing. Credit Rate, an output of credit-rating process, reflects such creditworthiness. We reviewed literature on elements of credit rating, viz. Credit Rate, credit-rating agencies (CRAs) and credit-rating model. Credit Rating is an independent evaluation of creditworthiness. CRAs perform this evaluation to support financial institutions in processing debts. Literature added in credit-rating domain from January 2001 to November 2020 is analyzed to explore the opportunities for further research. Bibliometric analysis is used to comprehend the existing literature. Subsequently, through structured review theories, methodologies used by researchers and CRAs are explored. Further, a hybrid literature review is developed by integrating bibliometric and structured review of research papers from widely recognized databases. A sample of 153 papers is constructed and studied to identify gaps in credit-rating domain and to develop suitable remedy to fill such gaps. We found that most of the studies emerged as after-effects of financial crisis reported in 2008 and 2016. The review revealed that 48% studies focused on development of new credit-rating mechanism without evaluating existing structure in-depth. This paper contributes to existing literature by encouraging researchers and CRAs to develop a sector-specific credit-rating system by evaluating existing models and improvising them by adopting advanced techniques like Multiple Regression, Neural Networking and Artificial Intelligence. We have provided a feasible research agenda to further explore credit-rating domain. In this study we have identified that the factors determining creditworthiness are different for different sectors.

This article politicises the discourse of emerging markets in global finance. The black-boxed appearance of credit markets easily obscures the significant amount of subjective evaluation and cultural work that underpins capital flows. This article reveals the colonial, masculine, and racial imagination that informs the articulation of emerging markets as geographies of risk and profit. This brings into view the postcolonial nature of contemporary finance and how colonialism's regimes of power and knowledge remain crucial for the reproduction of the global political economy. To illustrate this point, the article highlights the sociality of credit practices. Contrary to their mathematical appearance, credit is a relationship with the future, mediated by social imaginations of trust. Focusing on emerging markets as 'risk-versus-reward' investments, this article examines the long-term colonial histories embedded in modern investment discourses. The article aims to show the continuing relevance this history plays for emerging market economies in modern financial markets and their political economies. [ABSTRACT FROM AUTHOR]

Introduction. The article analyzes the existing trends in the field of bank lending during the crisis of 2014-2017. The reasons for the decline in lending activity of domestic banks are considered. Mechanisms for intensifying bank lending as a necessary condition for ensuring economic growth in Ukraine are proposed. Methods. General scientific methods of cognition, induction, deduction and comparison are used in the article. Statistical and graphical methods and the method of mathematical modelling were used to analyse the causes and consequences of the decline in banks' lending activity. The system method was used in the development of proposals and recommendations. Results. Bank lending in Ukraine during the economic crisis of 2014-2017 and pandemic shocks is studied. Negative factors influencing the credit activity of banks have been identified. The main miscalculations of the National Bank of Ukraine, the Government and the legislature in the field of creating conditions for stimulating the lending activity of banking institutions are substantiated. With the help of cluster analysis, domestic banks are grouped into four clusters according to the level of their participation in lending to the Ukrainian economy. Discussion. The peculiarities of bank lending to domestic enterprises at the present stage are highlighted. Based on the analysis of the development of bank lending in Ukraine, promising strategies for intensifying bank lending support to the real sector of the national economy have been developed. [ABSTRACT FROM AUTHOR]

The purpose of the article is to develop a methodological approach to support the decision-making process in determining the creditworthiness of legal entities, as well as to create economic mathematical models based on this approach using the theory of fuzzy logic and fuzzy sets. Methodology. In the author's work (Palamarchuk, 2013), 49 real financial statements (Form 1 and Form 2) of Ukrainian enterprises were selected, 25 of which were potentially bankrupt and 24 were normally operating enterprises. As a result, 7 coefficients were obtained. Here we continue our modelling and building rule base. Result of the experiment is based on statistical data of domestic enterprise. The model has been constructed with the use of theory of fuzzy logic. Considering the expert knowledge, this model helps to make decisions on whether to provide the legal entity with the loan. Practical implications. The model and methodology can be used in commercial banks of Ukraine for calculating application risks. The known models do not fit to every economy. This is the reason which provides value originality of the topic of this study, which solves the problem of creating a method that would give the most sufficient assessment of creditworthiness.

The paper discusses the evaluation of the financial stability of an enterprise, depending on the business potential of a municipality. The aim of the research is to prove a relation of the prediction models and their ability to predict the financial ability of an enterprise depending on sample clusters of the business potential in a municipality. In the first part of the research, the municipalities are clustered using the cluster analysis and the municipalities are classified into four clusters - economic, social, infrastructural, and environmental. Subsequently, financial data on business entities located in the area are used and the prediction models are calculated using the Czech indices of the Neumaiers. The results are further graphically evaluated in terms of size and sectors of the enterprise. The ANOVA method is verified to assess the independence of the creditworthiness models on sample clusters. Regarding the method and the analytical tool, it is possible to state their suitable choice; the outputs are relevant, valid, and usable in practice. The influence of the creditworthiness on the environmental cluster in the area is proved.

The most widespread method that directed to reduce credit risk is evaluation of creditworthiness of the organization. Therefore it is relevant to investigate thoroughly the method and procedure of analysis of creditworthiness. The complexness of evaluating creditworthiness leads to apply different methods. The world experiences shows it. There are variety of experience of different countries in evaluating liquidity and creditworthiness, and consequently the applied indicators are differ from each other. This paper considers method and procedure of evaluating creditworthiness based on example JSC ‘Freedom Finance’. Thus, the research shows the role and meaning of the analysis of creditworthiness as a main criteria in developing effective credit relation between bank and client.

The article is devoted to the topical problem of the development of agro-industrial complex, in particular, the development of the novelty model of agricultural lending. Experience of crediting of agriculture inRussiasince 1992 till now is considered. We provide a critical approach to the assessment of the current system of agricultural credit, which requires the presence of another economic incentive — the budget subsidy.Our purpose was a comprehensive author’s study of the problems of applying the practice of preferential agricultural lending, as well as the development of proposals aimed at improving the system of state support for the agricultural credit system.The methodological tools of the research include comparative methods of analysis, as well as analytical methods of cognition.We carried out the analysis of the models of crediting of farmers applied for the specified period and the main problems in practice of their application. As the most effective model of farmer’s lending defined “fund” model, used from 1997 to 2001. The main drawback of this system is the fragmentation of property interest in the subject of agriculture in a single loan obligation. The author developed a new system of agricultural lending, based on the “fond” model of the 90s. Its distinctive feature is dual targeting — for in economic entities (small and large businesses) and credit institutions (banks and credit cooperatives), while at the same time with maintaining a high level of state control (which is provided by a single source of credit resources — the state).The results of the study can be used in the development of both individual credit measures of state support for agricultural producers, and in the preparation of the State program of development of agriculture and regulation of markets of agricultural products, raw materials and food.