P. Alam et al., The use of fuzzy clustering algorithm and self-organizing neural networks for identifying potentially failing banks: an experimental study, EXPER SY AP, 18(3), 2000, pp. 185-199
In this paper, we present experimental results of fuzzy clustering and two
self-organizing neural networks used as classification tools for identifyin
g potentially failing banks. We first describe the distinctive characterist
ics of fuzzy clustering algorithm, which provides probability of the likeli
hood of bank failure. We then perform the comparison between the results of
the closest hard partitioning of fuzzy clustering and of two self-organizi
ng neural networks and present our results as the ranking structure of rela
tive bankruptcy likelihood. Our findings indicate that both the fuzzy clust
ering and self-organizing neural networks are promising classification tool
s for identifying potentially failing banks. (C) 2000 Elsevier Science Ltd.
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