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J4  2009, Vol. 6 Issue (6): 828-    DOI:
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Loan Default Table: A Method to Measure the Loan Default  Possibility for Commercial Banks
 PENG Jian-Gang, YI Yu, LI Zhang-Fei
Hunan University, Changsha, China

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Abstract  

Based upon the fivedegree loan quality classification, this article puts forward loan default table method to calculate the possibility of the loan default. Based on the customers’ credit ratings, this method can measure the possibility of the loan default timely on the basis of customer's credit rating. The proposed method is designed to facilitate the measurement of the expected loss and unexpected loss of the loan portfolio for the Chinese commercial banks . 

Key words probability of default      default table method      five-degree loan quality classification      credit rating     
Received: 07 April 2008     
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PENG Jian-Gang
YI Yu
LI Zhang-Fei
Cite this article:   
PENG Jian-Gang,YI Yu,LI Zhang-Fei. Loan Default Table: A Method to Measure the Loan Default  Possibility for Commercial Banks[J]. J4, 2009, 6(6): 828-.
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http://manu68.magtech.com.cn/Jwk_glxb/EN/     OR     http://manu68.magtech.com.cn/Jwk_glxb/EN/Y2009/V6/I6/828
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