Credit risk assessment in bank based on SMEs using PCA

In recent years, small and medium-sized enterprises (SMEs) have gradually become the backbone of China’s national economic development due to their strong innovation ability and high operational efficiency However, such enterprises have poor anti risk ability in the early stage of development and need banks to lend to them In order to help banks quickly and accurately evaluate the ability of small and medium-sized enterprises to determine the amount of loans, this paper proposes a comprehensive ability evaluation model based on PCA algorithm Considering the strong impact of the new COVID-19 on SMEs in 2020, we introduce this sudden factor into the model to improve the adaptability of the model and help banks to accurately evaluate the enterprise capacity under the COVID-19