Assessment of the borrower's credit capacity using discriminative analysis

Abstract

Introduction. At the present stage of economic development in the organization of credit relations uses a significant number of approaches and methods to determine the creditworthiness of the borrower. Today, banking institutions are developing different approaches to the analysis of the borrower's creditworthiness. Moreover, each bank determines its own method of assessing the financial condition of a potential borrower, taking into account the specific terms of the contract. Assessment of creditworthiness of the enterprise by the method of discriminant analysis is carried out by calculating and interpreting the integrated indicator of financial condition. The purpose of the paper is to determine the nature and assessment of the borrower's creditworthiness using the methods of discriminant analysis. Results. Assessing the borrower's creditworthiness is a topical issue that affects the success and effectiveness of its lending activities. That is why the article is devoted to defining the nature and assessment of the borrower's creditworthiness using the methods of discriminant analysis. It assessed the creditworthiness of PJSC "Kharkiv Biscuit Factory" using foreign and domestic methods of assessing the creditworthiness of the borrower. It was determined that the main disadvantage of foreign models is that they are developed based on a study of enterprises in the United States and Western Europe. Weights are not adapted to modern conditions of transformation of the domestic economy and do not take into account the specifics of Ukrainian enterprises. These models have several significant limitations. They can be used only as additional models in parallel with modern domestic models. Calculating the probability of bankruptcy of PJSC "Kharkiv Biscuit Factory" according to foreign and domestic methods can give a clear conclusion about the financial condition of the enterprise. The above-mentioned methods demonstrate the absence of probability of bankruptcy at PJSC "Kharkiv Biscuit Factory". Conclusion. In general, the degree of reliability of the assessment of economic security of the enterprise and a set of necessary measures to prevent possible threats depend on the accurate identification of threats, the correct choice of a system of indicators for diagnosis. According to the results of calculations, it was determined that the company belongs to class A, which is characterized by high financial condition.