An Optimal Decision Assessment Model Based on the Acceptable Maximum LGD of Commercial Banks and Its Application

Table 4

The decision assessment results for farmers’ microfinance.

() Credit rating	() Annual	() Contrast 1	() Loan or not for contrast 1	() Contrast 2	() Loan or not for contrast 2
AAA	0.114%	0.114% < 4.25%	Agree to lend	0.114% < 4.96%	Agree to lend
AA	0.959%	0.959% < 4.25%		0.959% < 4.96%
A	1.598%	1.598% < 4.25%		1.598% < 4.96%
BBB	2.875%	2.875% < 4.25%		2.875% < 4.96%
BB	4.276%	4.276% > 4.25%	Reject lending	4.276% < 4.96%	Agree to lend
B	4.919%	4.919% > 4.25%		4.919% < 4.96%
CCC	6.641%	6.641% > 4.25%	Reject lending	6.641% > 4.96%	Reject lending
CC	10.981%	10.981% > 4.25%		10.981% > 4.96%
C	14.797%	14.797% > 4.25%		14.797% > 4.96%