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Data Mining from the Banking Sector´s Data
[Dolovanie dát z bankového sektora]

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  • Anna Biceková
  • Ľudmila Pusztová

Abstract

This paper deals with the prediction of company bankruptcies and defines how this undesirable state can be prevented. Currently, these methods include modern approaches from the area of data mining that can help companies in many ways. In a practical application of data mining methods for predicting the future state of a company, financial indicators of Polish companies were used. In the analyses, we used algorithms suitable for bankruptcy prediction - decision trees that provide a simple interpretation of results. In some experiments, we also used attribute selection methods, LASSO, or the PCA method. The workflow is governed by the CRISP-DM methodology, which describes the important steps needed for different analytical tasks. Part of the article is an analysis of the current state, which presents solutions to this problem suggested by other authors. After evaluating all models, we concluded that the C5.0 algorithm is capable of predicting a company's bankruptcy or non-bankruptcy with 97.07 % accuracy, without the use of attribute selection methods.

Suggested Citation

  • Anna Biceková & Ľudmila Pusztová, 2019. "Data Mining from the Banking Sector´s Data [Dolovanie dát z bankového sektora]," Acta Informatica Pragensia, Prague University of Economics and Business, vol. 2019(1), pages 18-37.
    • Handle: RePEc:prg:jnlaip:v:2019:y:2019:i:1:id:123:p:18-37
    DOI: 10.18267/j.aip.123
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    References listed on IDEAS

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    1. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    2. Dwyer, Gerald P. & Tkac, Paula, 2009. "The financial crisis of 2008 in fixed-income markets," Journal of International Money and Finance, Elsevier, vol. 28(8), pages 1293-1316, December.
    3. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 71-111.
    4. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
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