Determining logistic regression model applied on debitor client data in Bank A by modifying 8 criterias of selection.

Teguh Fayoga, Abdul Kudus, Siti Sunendiari

Abstract


Stagnant credit is a factor causes bankruptcy in banking industry. It is necessary to do analysis in banking industry to reduce credit risk. Classification credit analysis is necessary to avoid the risk of stagnant credit from bank clients. The classification credit used is logistic regression model, and it is known as qualitative selection model because this kind of model is not able to be assessed by using ordinary least quadrate method. When there are many model candidates, the best model must be chosen. This study describes the best model with modified eight selection criteria (M8SC). This study describes model formation approach where the entire model formation structures are described clearly using numerical illustration starting from identification of dependent and independent variables to select the best model.

Keywords


Stagnant credit, credit classification analysis, logistic regression, M8SC.

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DOI: http://dx.doi.org/10.29313/.v0i0.2402

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