Blockchains, Real-time Accounting, and the Future of Credit Risk Modeling


  • Hans Byström



blockchain, credit risk modeling, real-time accounting


In this paper I discuss how blockchains potentially could affect the way credit risk is modeled, and how the improved trust and timing associated with blockchain-enabled real-time accounting could improve default prediction. To demonstrate the (quite substantial) effect the change would have on well-known credit risk measures, a simple case-study compares Z-scores and Merton distances to default computed using typical accounting data of today to the same risk measures computed under a hypothetical future blockchain regime.


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How to Cite

Byström, H. (2019). Blockchains, Real-time Accounting, and the Future of Credit Risk Modeling. Ledger, 4.



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