Abstract
The need to predict timely bad customers of revolving loans in Mexico has increased, so it is proposed an improvement to the predictive model used by local regulation. This proposal shows a better analysis of qualitative and quantitative characteristics of consolidated loans than the methodology used by the CNBV on expected losses. The findings of this research show the great possibility to optimize the current model, minimising the creation of loan loss provisions, increasing profitability by financial institutions in Mexico, complying the theoretical assumptions and regulatory requirements at national and international level in credit risk management.
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