Research on Bank Credit Model Based on Decision Tree

Abstract

With the rapid development of small and medium-sized enterprises, banks need to establish a sound credit risk identification system. This paper makes a quantitative analysis on the credit risk of 302 enterprises without credit records, and gives the bank's credit strategy for these enterprises when the total annual credit amount is 100 million yuan. Using ID3 decision tree learning algorithm to predict the credit risk level of 302 enterprises, the credit strategies of 302 enterprises are obtained.