An Application of Logistics Regression Model to Determining the Credit Suitability and Impacting Factors in a Special Bank Branch

OpenAlex İngilizce

There are quite complicated rules and constraints that can be imposed by the bank when the loan issued. Bank branches,which play a direct role in the credit, must accurately determine the customer’s credit request to eliminate these difficulties and create an effective payment system according to the customer. In the study, 100 random loan applications made in 2016 of a bank branch operating in the Black Sea Region were examined. These customer demands are affecting customer characteristics. The ”Logistic Regression (LR) Model” was created to predict creditworthiness according to the identified fugitives. In the model, customer age, education, marital status, debt grade, credit card debt, other debts, cross product are the variables. These are statistically significant in terms of marital status, gender, cross product, or creditworthiness. However, various variables such as debt income ratio, credit carddebt, and other debts are statistically significant and affect credibility to negatively. In addition, occupational, income and educational constraints were found to be meaningless. With this model, the factors affecting the credit were evaluated. As a result of the study, the bank branch will benefit from the statistical model in which it is created, to evaluate according to the customer characteristics in its portfolio, and to give more credit to branch customers.