A Model Based on Decision Tree for Credit Risk Assessment in Commercial Banks

Based on the reality of commercial banks in China at present,a credit risk assessment model is built based on the analysis frame of decision tree C4.5 algorithm.Conclusions of classification can be drawn as to whether or not enterprises break a contract according to the financial data of loan enterprises through this model.This classification will be of great significance to commercial banks'management of controlling credit risks,and examples are provided to illustrate the theory of this mechanism.