American Journal of Business and Operations Research
AJBOR
2692-2967
2770-0216
10.54216/AJBOR
https://www.americaspg.com/journals/show/2298
2018
2018
An Improved Approach for Modeling Bank Loan Default in Pursuit of Sustainable Banking
University of Sharjah, Sharjah, UAE
Noura
Metawa
University of Murdoch, Dubai, UAE
Rania
Itani
This article presents our research effort to explore the convergence of sustainable banking practices and predictive modeling for bank loan defaults, with a primary emphasis on addressing the pressing need for resilient financial systems. To this end, an applied methodology is presented in this study to model bank loan defaults, emphasizing the incorporation of sustainability criteria into predictive analytics. Given the temporal nature of load data, our approach leverages Long Short-Term Memory (LSTM) networks as its backbone process for predictive modeling. The empirical results of the public case study underscored the enhanced predictive accuracy completed through this approach, emphasizing the pivotal function of integrating sustainability metrics in predicting mortgage defaults inside the banking area.
2024
2024
17
24
10.54216/AJBOR.110102
https://www.americaspg.com/articleinfo/1/show/2298