Research of credit risk of commercial bank's personal loan based on CHAID decision tree

摘要

Guard against financial risks, reduce bad loans, increase the ability to identity risk of commercial banks, the key is risk warning. In view of the increasing proportion of personal loans in banking business, it is particularly important to warning personal loans credit risk. Commercial bank lending itself is a complex nonlinear system, using general linear theory is difficult to objectively reflect the laws of this, this paper uses CHAID decision tree. Personal loan credit index first constructed, and then use CHAID to assort. Results showed that CHAID test samples of prediction accuracy.