Construction of a credit evaluation model using Analytic Hierarchy Process (AHP) Analitik Hiyerarşi Süreci (AHS) yöntemini kullanan bir kredi deǧerlendirme sistemi


Journal of the Faculty of Engineering and Architecture of Gazi University, vol.15, no.1-2, pp.1-14, 2000 (Scopus) identifier


This study aims to develop a credit evaluation model based on the current credit evaluation practice in the banks. In the current practice financial ratios are widely used to determine the credibility of firms. Along with financial ratios, the experts analyse the industry in which the firm resides .and the firm itself. However, the seperate scores are analysed seperately by experts and an intiutive credibility score is assigned. Analytic Hierarchy Process can combine these seperate score and calculate a single credibility score. In the application of the AHP, decision making is distributed into a hierarchical structure. Criteria, subcruteria and measures are classified and placed in this hierarchy. A case example is provided for illustrative purposes. The AHP model shortens the evaluation time and provides uniformity in credit decisions of the bank.