Fuzzy modeling of the creditworthiness assessments of bank’s potential borrowers in Ukraine

Abstract

In specific terms of banks functioning methods based on fuzzy logic allow to get grounded decision considering the fuzzy evaluation, fuzzy information about the object. The work provided practical recommendations for improvement the approach to evaluating the quality of the credit portfolio of the bank and ensure its quality on the basis of the model of assessment creditworthiness of borrower – individual. This study is aimed at defining the directions of credit activity intensification of the economic entities through complex automation of processing indicators of the assessment of the creditworthiness of borrowers in the face of rising systemic risk. This paper presents a model for evaluating creditworthiness of the borrower on the basis of fuzzy logic. The results of research can be used in practical activity of banks for assessing the financial state of their clients by the established criteria and for acceptance by personnel the decision regarding the advisability of granting credit in each case. Formulated theoretical position can be used for further research in the sphere of evaluating the quality of the bank loan portfolio and credit risk management.