Alternative approach to credit scoring by DEA: Evaluating borrowers with respect to PFI projects

摘要: Private finance initiative (PFI), as a form of public/private partnership (PPP), helps to contract the private sector governmental projects. In contrast traditional public financed projects, PFI projects are procured by allowing entity take responsibility design, build, finance, and operate (DBFO) an asset for period up several decades. Moreover, banks perceived leading role in financing Since project involves credit assessment loan applicants, have employed popular scoring models assess their creditworthiness. Although existing useful scoring, new emerge response ever-changing business practices. This paper therefore aims at introducing application data envelopment analysis (DEA) alternative credit-scoring model. Unlike building on formula where weights set criteria assigned subjectively, DEA will automatically generate relative analysis. However, incorporating demands additional considerations, which discussed this paper. Finally, examples demonstrated illustrating alterative approach DEA. (c) 2006 Elsevier Ltd. All rights reserved.