Evolutionary Rule Extraction from Corporate Default Prediction Models
Small and medium-sized enterprises (SMEs) represent the majority of firms in most economies and often face financial constraints and higher vulnerability to financial distress. Predicting SME default is therefore crucial for financial institutions, policymakers, and researchers. Recent advances in machine learning (ML) have improved predictive performance in credit risk modeling. Yet, the limited interpretability of complex models raises concerns regarding transparency and regulatory compliance. This study investigates SME's default predictors and applies explainable artificial intelligence (XAI) techniques to them. Using a panel of 50,718 Italian SME over the period 2015-2024, we compare...
| Authors | Desirè Fabbretti, Matteo Pasquino, Elia Pacioni et al. |
|---|---|
| Primary category | cs.NE |
| Published | 28 May 2026 |
| Last updated at source | 28 May 2026 |
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