<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Algerian public banks need to implement credit risk management techniques tailored to the specific characteristics of SMEs to prevent the deterioration of the banks’ solvency due to the degradation of the quality of their SME portfolios. In this regard, our main objective is to highlight the interest that credit risk management will have within the People’s Credit of Algeria by developing a Credit Scoring model based on the logistic regression technique, using a sample of 226 SMEs. The study results demonstrate the importance of the logistic regression model in classifying companies and its predictive ability for default, with a good classification rate of 91.2%.</p>
</abstract>

Algerian public banks need to implement credit risk management techniques tailored to the specific characteristics of SMEs to prevent the deterioration of the banks’ solvency due to the degradation of the quality of their SME portfolios. In this regard, our main objective is to highlight the interest that credit risk management will have within the People’s Credit of Algeria by developing a Credit Scoring model based on the logistic regression technique, using a sample of 226 SMEs. The study results demonstrate the importance of the logistic regression model in classifying companies and its predictive ability for default, with a good classification rate of 91.2%.

Scoring: Failure Risk Management Tool for SMEs in Algeria

Scientific Bulletin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Scoring: Failure Risk Management Tool for SMEs in Algeria"}

Algerian public banks need to implement credit risk management techniques tailored to the specific characteristics of SMEs to prevent the deterioration of the...

Scoring: Failure Risk Management Tool for SMEs in Algeria

Published Online: Jun 07, 2024

Page range: 169 - 178

DOI: https://doi.org/10.2478/bsaft-2024-0018

Keywords
Banks, SMEs, scoring, risk, credit, Algeria

© 2024 Lamine Tarhlissia, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Scoring: Failure Risk Management Tool for SMEs in Algeria

Published Online: Jun 07, 2024

Page range: 169 - 178

DOI: https://doi.org/10.2478/bsaft-2024-0018

KeywordsBanks, SMEs, scoring, risk, credit, Algeria

© 2024 Lamine Tarhlissia, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Banks, SMEs, scoring, risk, credit, Algeria