The use of credit scoring in credit risk management
Banks, from the beginning of their existence, have been trying to work out a method that will reduce
the risks and costs associated with lending. One of the newest methods used by banks is
credit scoring, which is a tool used to evaluate the creditworthiness of prospective borrowers. The
article presents issues related to the use of credit scoring in a bank. Particular attention was paid to
the factors influencing the quality of scoring methods. The aim of this paper is the description of
influence of credit scoring on credit portfolio quality. The conclusions were based on a study of
scoring models implemented at Polish retail banks. The main conclusion that can be drawn from
this research is that implementation of credit scoring models improves credit portfolio quality. It is
worth noting that credit scoring has also the following benefits: increased speed and consistency
of risk assessment, possible automation of the risk assessment process, and reduced subjectivity
and increased objectivity in risk assessment.

Banks, from the beginning of their existence, have been trying to work out a method that will reduce
the risks and costs associated with lending. One of the newest methods used by banks is
credit scoring, which is a tool used to evaluate the creditworthiness of prospective borrowers. The
article presents issues related to the use of credit scoring in a bank. Particular attention was paid to
the factors influencing the quality of scoring methods. The aim of this paper is the description of
influence of credit scoring on credit portfolio quality. The conclusions were based on a study of
scoring models implemented at Polish retail banks. The main conclusion that can be drawn from
this research is that implementation of credit scoring models improves credit portfolio quality. It is
worth noting that credit scoring has also the following benefits: increased speed and consistency
of risk assessment, possible automation of the risk assessment process, and reduced subjectivity
and increased objectivity in risk assessment.