The theoretical study of the impact of financial and non-financial variables on credit granting
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
Copyright (c) 2024 Ahmed OULD MOHAMED MOCTAR, Aziz DOUARI
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