The objective of this project is to analyze various credit risk assessment models used by banks to evaluate loan applicants. It aims to understand the effectiveness of these models in minimizing defaults and ensuring sound lending decisions in the banking sector.
Study the concept of credit risk and its importance in banking operations.
Review different credit risk assessment models such as scoring models and rating systems.
Analyze how banks use customer data like income, credit history, and employment status.
Conduct interviews or secondary research on banking practices in credit evaluation.
Compare traditional credit assessment methods with modern data-driven approaches.
Examine the role of credit bureaus in providing credit reports.
Analyze case studies of loan approvals and rejections.
Use sample datasets to simulate a basic credit scoring model.
Evaluate the strengths and limitations of existing risk models.
Study regulatory guidelines related to credit risk management.
Identify challenges faced by banks in assessing borrower risk accurately.
Provide recommendations to improve credit risk assessment frameworks.
Present findings with charts and graphs for better understanding.
