Study on the Evaluation System of Individual Credit Risk in commercial banks based on data mining

Individual credit risk has become the major risk of commercial banks in China all long. This paper proposes an Individual Credit Risk Evaluation System (ICRES) using data mining technology, with the aid of the concept of “feed forward control” in management theory as well as the reality in China. Using the information gain method to screen the alternative indicators and identify indicators that have greater impact on the classification prediction. Appling logistic regression modeling method to predict the individual credit risk. The two parts above are the innovation and the main contribution of the paper. Finally, we made concrete examples illustrate the application of the ICRES.