An early warning system for loan risk assessment using artificial neural networks

摘要

The purpose of this paper is to examine the application of artificial neural networks (ANN) to an early warning system for commercial bank loan risk. The aspects of knowledge acquisition, knowledge representation and knowledge-based reasoning process in the early warning system are discussed in the paper. The paper demonstrates how to design a decision tool based on the BP model and provides examples. The results show that this method offers a good tool for early warning.