DEVELOPING AN EARLY WARNING SYSTEM FOR LOAN CLASSIFICATION AND CREDIT RISK MANAGEMENT
Keywords:
early warning system, loan classification, credit risk, probability of default, non-performing loans,Abstract
This thesis examines the development of an early warning system (EWS) for improving loan classification and credit risk management in commercial banks and other lending institutions. The proposed framework integrates borrower-level financial indicators, repayment behaviour, account activity, collateral quality, sectoral conditions, and macroeconomic signals into a unified risk-monitoring process. The study emphasizes the transition from periodic, backward-looking loan review to continuous and forward-looking risk detection.
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References
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