Consumer finance data generator - a new approach to Credit Scoring technique comparison
This paper aims to present a general idea of method comparison of Credit Scoring techniques. Any scorecard can be made in various methods based on variable transformations in the logistic regression model. To make a comparison and come up with the proof that one technique is better than another is a big challenge due to the limited availability of data. The same conclusion cannot be guaranteed when using other data from another source. The following research challenge can therefore be formulated: how should the comparison be managed in order to get general results that are not biased by particular data? The solution may be in the use of various random data generators. The data generator uses two approaches: transition matrix and scorings. Here are presented both: results of comparison methods and the methodology of these comparison techniques creating. Before building a new model the modeler can undertake a comparison exercise that aims at identifying the best method in the case of the particular data. Here are presented various measures of predictive model like: Gini, Delta Gini, VIF and Max p-value, emphasizing the multi-criteria problem of a "Good model". The idea that is being suggested is of particular use in the model building process where there are defined complex criteria trying to cover the important problems of model stability over a period of time, in order to avoid a crisis. Some arguments for choosing Logit or WOE approach as the best scorecard technique are presented.
Basel Committee on Banking Supervision Bank for International Settlements 2 Centralbahnplatz Ch – 4002 Basel Switzerland Bcbs.capital@bis.org Re: Comments and Response to the Consultative Document " the New Basel Capital Accord "
Citigroup appreciates and welcomes the opportunity to comment on The New Basel Capital Accord (“the New Accord”). We anticipated with enthusiasm a new capital adequacy framework that would reflect industry assessments of economic capital by incorporating more risk sensitive capital charges. We are disappointed that, in several key respects, the New Accord does not appear to achieve its main objectives. Citigroup believes that if the New Accord were implemented in its current form, there would be unintended consequences that could have a significant negative impact on the economy in general and the financial services industry in particular. The New Accord, as drafted, would also create increased incentives for regulatory arbitrage which could impact the safety and soundness of the financial system.
Multi-layer inpainting on Chinese artwork
Digital inpainting uses spatial or frequency information to restore partially damaged/removed photos and artworks. Most restoration algorithms take a picture as a single layer. We propose a new approach, which subdivides a Chinese painting into several layers. Each layer is inpainted separately. The layer fusion mechanism then finds the optimal inpaint among layers, which are restored layer-bylayer. We apply the algorithm on Chinese and western drawing. The result shows a high PSNR value as well as a high user satisfaction. The demonstration of our work is available at: http://www.mine.tku.edu.tw/demos/inpaint.