Author(s)

Jun Liu, Tengfei Wang, Xiaole Hu

Corresponding Author

Tengfei Wang

ABSTRACT

The growing ranks of small and medium-sized enterprises have brought great pressure on the credit funds of commercial banks. To improve the information of loan enterprises, strengthen the prediction of credit risk, and improve the credit profit, so as to maintain a stable number of loan enterprises and loan profits, will make the commercial banks and lending enterprises better development. Therefore, this paper uses the entropy weight method and linear regression analysis method, establishes the revised TOPSIS model, binary logistic regression model and ROC curve evaluation model, comprehensively uses MATLAB, lingo, SPSS and other software to solve, obtains the quantitative expression of credit risk and the influence of various factors on credit risk, so as to realize the optimal allocation of bank funds.

KEYWORDS

Credit risk entropy weight method, linear programming