Financial analysis slashes credit risks for banks, revolutionizing lending practices.
Financial analysis plays a crucial role in helping banks reduce credit risks. By analyzing financial data and ratios, banks can make more informed decisions when granting credit. This study found that banks that conduct thorough financial analysis before giving out loans are able to minimize risks. Using models to classify credit and analyzing customer data are recommended practices to further reduce credit risks. Overall, the research highlights the importance of utilizing financial analysis tools to make smarter credit decisions and minimize potential risks for commercial banks.