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

pdf download

Download Full-Text Pdf



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.


  1. Basel Committee on Banking Supervision (BCBS) (2005), An Explanatory Note on the Basel II IRB Risk Weight Functions. Retrieved at:

  2. Basel Committee on Banking Supervision (BCBS) (2004), Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised Framework. Retrieved at:

  3. Bui Phuc Trung (2011), Application of Statistical Methods for Building Credit Ranking Models for Listed Enterprises in Vietnam's Securities Market, Journal of Economic Development, (No. 245), p. 43-51.

  4. Dean Caire (2009). Building Credit Scorecards for Small Business Lending in Developing Markets. Retrieved at:

  5. FSI (2010). Regulatory use of system-wide estimations of PD, LGD and EAD. Retrieved at:

  6. Moody’s (2009). Rating Symbols & Definitions. Retrieved at:'s%20rating%20scale.pdf.

  7. Naeem Siddiqi (2017). Intelligent Credit Scoring: Building and Implementing Better Credit Risk Scorecards, Hoboken, New Jersey: Wiley.

  8. National scientific science workshop (2017). Application of Basel II in risk management of Vietnam commercial banks: opportunities - challenges and implementation schedule. Retrieved at:

  9. Nguyen Thi Thanh Huyen (2011), Corporate Credit Risk Management by Customer Risk Level - International Experience, Banking Magazine, (No. 7), p. 60-67.

  10. Standard and Poor’s (2014). Guide to Credit Rating essentials. McGraw Hill Financial.

About Us

The Asian Institute of Research is an online and open-access platform to publish recent research and articles of scholars worldwide. Founded in 2018 and based in Indonesia, the Institute serves as a platform for academics, educators, scholars, and students from Asia and around the world, to connect with one another. The Institute disseminates research that is proven or predicted to be of significant influence for the general public.

Contact Us

Please send all inquiries to the email:

Business Address:

5th Floor, Kavling 507, Fajar Graha Pena Tower, Jl. Urip Sumohardjo No.20, Makassar, Indonesia 90234

Copyright © 2018 The Asian Institute of Research. All rights reserved

Stay Connected

  • Instagram - Black Circle
  • Facebook - Black Circle
  • LinkedIn - Black Circle