Research On Default Risk Measurement Of Internet Financial Microfinance Based On CreditRisk+ Model

With the rise of Internet finance,more and more fintech companies are getting involved in the "Internet + consumer finance" business field.In the context of Internet finance,effective prevention and control of credit risk caused by borrower default is a key issue for the stable development of personal microfinance business.The whole paper is divided into six parts,firstly,it is the introduction of the article,which introduces the topic and significance of the research,determines the content and structure of the research,clarifies the research method and technical roadmap as well as the three innovation points;secondly,it is the literature review and the overview of related theories;the third chapter is the introduction of China’s Internet finance personal microloan risk causes and the current situation of control;Chapter 4 is a study of the factors influencing the personal credit risk of borrowers in M’s microloan business;Chapter 5 is a study of borrower credit risk measurement based on CreditRisk+ model;Chapter 6 is a study of conclusions and recommendations.This paper combines theory and practice,uses binary logistic regression theory to analyze the influencing factors of borrowers’ credit risk,constructs a prediction model of borrowers’ default probability,and uses CreditRisk+model to study borrowers’ credit risk metrics,and explores how differential pricing can control expected losses based on RAROC pricing theory.We hope to help microfinance companies control risks and improve business management and operational efficiency;and we hope to provide reference for later scholars’ research in this field.