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الصفحة الرئيسية » الإصدار 1، العدد 1 ـــــ ديسمبر 2022 ـــــ Vol. 1, No. 1 » A Proposed Fuzzy Approach for Rating Credit Risks

A Proposed Fuzzy Approach for Rating Credit Risks

بيانات الباحث

Ph.D. of Information Systems, Faculty of Computers and Informatics, Zagazig University, Egypt

Ph.D. of Finance, Faculty of Commerce, Zagazig University, Egypt

ملخص البحث

The credit risk rating is one of the most important problems in finance. The credit risk rating is a method of measuring the creditworthiness of enterprises and banks by analyzing their historical data. Most Egyptian commercial banks are unable to determine and predict credit risk rating. So far, there is no accurate model in Egypt for determining and predicting the credit risk rating of these commercial banks. In this paper, the researchers propose a fuzzy logic-based model that can be used to assist in determining and predicting bank credit risk ratings. They are taking the rating scale of Moody’s as an output for the proposed model. The proposed model is based on financial ratios used in Egyptian commercial banks i.e., profitability, debt-paying ability, operation ability, and liquidity to determine their credit risk rating. This model was implemented using fuzzy logic in MATLAB and applied to CIB Egyptian commercial bank. This model could help the decision-makers in the Egyptian commercial banks to determine accurately the credit risk rating of these banks.