Abstract
This paper investigates banks' credit strategies concerning micro, small and medium enterprises (MSMEs) by taking into consideration the intrinsic characteristics of individual enterprises and external correlations among them when assessing credit risk. We analysed transaction data between enterprises and utilised the Bean Search algorithm and Markov random field to construct enterprise network topology diagrams, quantifying inter-enterprise correlations. We also applied the combined weight method to balance their creditworthiness and strength indices and developed a comprehensive and scientifically grounded credit strategy model for MSMEs by employing genetic algorithms to solve nonlinear programming problems. Overall, our proposed model aims to maximise loan revenues while simultaneously minimising the risk of customer default.
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