Research on the best loan-to-value ratio of inventory financing based on credit risk
Yili Su, Fuchang Li, Guichang Zhe, Xiaohui Hu
Available Online October 2017.
- https://doi.org/10.2991/febm-17.2017.138How to use a DOI?
- credit risk; inventory financing; lending decisions.
- The loan-to-value ratio is the key to decide bank facing different degree of credit risk, which directly affect the profitability of the bank. In order to avoid bank's losses accused by inventory financing due to credit risk, this paper chooses the loan-to-value ratio as the research object supposed that Credit risk events follow Poisson distribution. By the model construction, the bank can get best ratio under different credit risk. The research results provide important practical significance for bank to make decisions about the best loan-to-value ratio in the inventory financing business of the loan enterprises.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Yili Su AU - Fuchang Li AU - Guichang Zhe AU - Xiaohui Hu PY - 2017/10 DA - 2017/10 TI - Research on the best loan-to-value ratio of inventory financing based on credit risk BT - Second International Conference On Economic and Business Management (FEBM 2017) PB - Atlantis Press SP - 1036 EP - 1040 SN - 2352-5428 UR - https://doi.org/10.2991/febm-17.2017.138 DO - https://doi.org/10.2991/febm-17.2017.138 ID - Su2017/10 ER -