The theoretical study of the impact of financial and non-financial variables on credit granting

  • Ahmed OULD MOHAMED MOCTAR Faculty of Economics and Management, Hassan First University, Settat, Morocco
  • Aziz DOUARI Faculty of Economics and Management, Hassan First University, Settat, Morocco

Abstract

Access to credit is crucial for individuals, businesses and the economy as a whole. Granting bank credit is an important decision for banks, as it exposes the financial institution to the risk of loss. Banks must therefore grant credit prudently, taking into account a variety of factors, including financial and non-financial variables. This study explores the collective influence of both financial and non-financial variables in the context of credit granting. In the face of changing economic dynamics, the aim is to assess how traditional variables, such as financial ratios, interact with non-financial factors, such as a company’s management and reputation. The interest lies in the creation of more accurate credit scoring models, thereby optimizing credit portfolio management. The complexity of this interaction poses a central problem, with the challenge of selecting relevant variables and creating adaptive models. This research provides a significant contribution to the literature on credit risk assessment.

 

Keywords: Risk, Credit, Financial Variables, Non-Financial Variables, Prediction

JEL Code : C01, C32, E50, G01, G15

Paper type: Theoretical Research

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Published
2024-02-08
How to Cite
OULD MOHAMED MOCTAR, A., & DOUARI, A. (2024). The theoretical study of the impact of financial and non-financial variables on credit granting. International Journal of Accounting, Finance, Auditing, Management and Economics, 5(2), 43-65. https://doi.org/10.5281/zenodo.10635504
Section
Articles