Selection Method for Credit Risk Assessing Targets in Commercial Banks Via Entropy Weights

Based on information entropy theory, the criterion of selection of credit risk assessing targets is choosing targets with larger entropy weights. This paper define an efficiency index to indicate the efficiency of the set of targets as well as the discrimination of evaluation results. An illustrative example is provided to show that, after getting rid of the target with very little entropy weight, the computing process is simplified and the validity of assessing targets is improved.