Credit Risk Assessment of Bank Customers using DEMATEL and Fuzzy Expert System

Credit risk remains one of the major threats that financial institutions especially banks face, and it is essential to model the credit risk of these institutes and banks. The purpose of this research is credit risk assessment of bank customers. In this paper, the DEMATEL method has been used to select the proper financial ratios which are effective on the decision making process of the experts and based on these financial ratios and the acquired rules via bank experts, a Mamdani's Fuzzy Expert system has been developed which predicts the Customers' Credit Risks. This system is able to help the banking systems to identify the level of credit risks for their customers according to their financial status which is a critical issue for the banks. Finally, the presented steps have been studied in an Iranian Bank as empirical study.