Journal of Social and Political
ISSN 2615-3718 (Online)
ISSN 2621-5675 (Print)
Published: 14 February 2019
Credit Scoring Application at Banks: Mapping to Basel II
Hoai Linh Do, Thi Thu Hang Luong, Xuan Thang Nguyen, Ngoc Linh Mai
National Economics University Vietnam, Military Commercial Joint Stock Bank Vietnam
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Credit scoring is a process to find out the numerical assessment that mainly relied on an analysis borrower' profile. A credit score is primarily based on a credit report information commonly sourced from customer files and independent sources. Lenders, such as banks use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Hence, credit scoring is a powerful tool. By examining knowledge in Credit scoring as well as Basel II fundamentals, the author proposed a mapping process to match Credit score application at banks in accordance with Basel II.
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