Credit risk gini

What does 50% Gini index mean?
A Gini coefficient of 50 represents 50 percent concentration in a country's income distribution.
What does it mean to have 50 percent concentration in a country's income? A Gini of 50 could mean that half the people share all of the income while the other half get nothing..
What is a good Gini coefficient credit scoring?
A coefficient value of 100 would indicate that all of the defaulting consumers were successfully assigned the lowest possible scores.
Gini coefficients of 45 or above are deemed to be indicators of strong credit-scoring accuracy._{Apr 26, 2017}.
What is Gini in finance?
The Gini index is a measure of the distribution of income across a population.
A higher Gini index indicates greater inequality, with high-income individuals receiving much larger percentages of the population's total income..
What is the Gini risk measure?
In other words, a Gini Coefficient can help measure how good a credit score is at predicting who will repay and who will default on a loan: the better a credit score, the better it should be at giving lower scores to riskier applicants, and higher scores to safer applicants..
What is the relationship between ROC and Gini?
We show that the ROC curve can be presented as a relative concentration curve for a properly defined X and Y , hence the area between the ROC curve and the 45-degree line can be calculated as a Gini covariance up to constants..
A coefficient value of 100 would indicate that all of the defaulting consumers were successfully assigned the lowest possible scores.
Gini coefficients of 45 or above are deemed to be indicators of strong credit-scoring accuracy._{Apr 26, 2017}
The Gini score measures the rank-ordering power of the model, which helps determine how effectively the model can identify default observations based on the order of its predictions.
A Gini score of 1 indicates perfect discrimination ("crystal ball" performance), while a score of 0 implies no discriminatory power.
When an increase in Gini Coefficient is effected by an income share transfer from the poorest quintile to the richest, a bump in Gini Coefficient of 0.01 corresponds to a transfer in income share of 0.25% of the total income of the country.

The Gini coefficient measures separation power. Similar to how it is used in economics to measure inequality. However for credit risk, the higher the Gini, the better. It means, among the good ratings and bad ratings, the separation is good.

Measure of inequality of a distribution

In economics, the Gini coefficient, also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income inequality, the wealth inequality, or the consumption inequality within a nation or a social group.
It was developed by Italian statistician and sociologist Corrado Gini.

Credit risk gini

What does 50% Gini index mean?

What is a good Gini coefficient credit scoring?

What is Gini in finance?

What is the Gini risk measure?

What is the relationship between ROC and Gini?