A Multi-Objective Credit Evaluation Model Using MOORA Method and Goal Programming

Abstract

The selection process of a suitable credit applicant firm becomes a more complex decision making process as the decision makers in the banking industries have to assess a wide range of firms based on a set of conflicting financial ratios. This study investigates the new model of the multi-objective optimization on the basis of ratio analysis and the goal programming method together to solve credit lending decision making problems for firms as frequently encountered in real-time commercial banking environments. A multi-objective credit evaluation model is developed to use in all the stages of the credit evaluation process.