Quality Evaluation of Bank Credit: Empirical Evidence Using Logistic Regression Model

Consumer credit today has become an important form of diversification in the banking offer and it is a fundamental tool for the acquisition of new customers. The assessment of credit risk and therefore the reliability of the customer, is a fundamental aspect which needs to be explored because it has direct influences both on the level of the interest rates applied on the loan and on the timing of credit disbursement, with strong implications on customer satisfaction. There are various methods which can be used in the field of credit scoring including those of a statistical nature. One of the most used model is the logit one. The purpose of this paper is to provide empirical evidence about the application of the logistic model in the analysis of credit scoring.