Optimizing the Reliability of a Bank with Logistic Regression and Particle Swarm Optimization

@article{Ravi2020OptimizingTR,
  title={Optimizing the Reliability of a Bank with Logistic Regression and Particle Swarm Optimization},
  author={Vadlamani Ravi and Vadlamani Madhav},
  journal={arXiv: General Finance},
  year={2020}
}
It is well-known that disciplines such as mechanical engineering, electrical engineering, civil engineering, aerospace engineering, chemical engineering and software engineering witnessed successful applications of reliability engineering concepts. However, the concept of reliability in its strict sense is missing in financial services. Therefore, in order to fill this gap, in a first-of-its-kind-study, we define the reliability of a bank/firm in terms of the financial ratios connoting the… Expand

Figures and Tables from this paper

Logistic Regression Based on Bat-Inspired Algorithm with Gaussian Initialization
  • Kaixi Zhou, Wei Nai, +4 authors Dan Li
  • 2021 IEEE 5th Advanced Information Technology, Electronic and Automation Control Conference (IAEAC)
  • 2021
Logistic regression is a supervised statistical learning method in the field of statistics and machine learning nowadays. The core idea of traditional logistic regression algorithm is to use gradientExpand

References

SHOWING 1-10 OF 27 REFERENCES
Bankruptcy prediction in banks and firms via statistical and intelligent techniques - A review
TLDR
A comprehensive review of the work done, during the 1968-2005, in the application of statistical and intelligent techniques to solve the bankruptcy prediction problem faced by banks and firms is presented. Expand
Prediction of commercial bank failure via multivariate statistical analysis of financial structures: The Turkish case
TLDR
Results of the study show that, if IEWS was effectively employed in bank supervision, it can be possible to avoid from the bank restructuring costs at a significant amount of rate in the long run. Expand
Probabilistic modeling and visualization for bankruptcy prediction
TLDR
An in-depth analysis is conducted showing that, in addition to a probabilistic interpretation, the Gaussian process classification framework can effectively improve the bankruptcy prediction performance with high accuracy when compared to the other approaches. Expand
Dynamics of firm financial evolution and bankruptcy prediction
  • P. Jardin
  • Computer Science
  • Expert Syst. Appl.
  • 2017
TLDR
The results show that, whatever the modeling technique used to design prediction models, model accuracy can be significantly improved when the horizon exceeds two years, and model accuracy is always improved whatever the forecasting horizon, when compared to traditional models used by financial institutions. Expand
Bank Reliability Assessment Model: Case of Latvia
Reliable and stable banks are an important precondition for the sustainable development of national economy. The objective of the chapter is to design a model allowing assessment of bank reliabilityExpand
Systematic review of bankruptcy prediction models: Towards a framework for tool selection
TLDR
It was found that no single tool is predominantly better than other tools in relation to the 13 identified criteria, and an overall better performance model can only be found by informed integration of tools to form a hybrid model. Expand
Hybrid and ensemble-based soft computing techniques in bankruptcy prediction: a survey
TLDR
This paper presents a comprehensive review of hybrid and ensemble-based soft computing techniques applied to bankruptcy prediction, namely how different techniques are combined, but not on obtained results. Expand
Variable precision rough set theory and data discretisation: an application to corporate failure prediction
Since the seminal work of Pawlak (International Journal of Information and Computer Science, 11 (1982) 341-356) rough set theory (RST) has evolved into a rule-based decision-making technique. ToExpand
Wind Power Interval Prediction Based on Improved PSO and BP Neural Network
As is known to all that the output of wind power generation has a character of randomness and volatility because of the influence of natural environment conditions. At present, the research of windExpand
Improving the Bank Reliability Evaluation Framework
Due to recent insolvency, bankruptcy, rehabilitation, license withdrawals of commercial banks, and lack of proper deposit insurance framework, the significance of bank reliability (BR) evaluationExpand
...
1
2
3
...