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Bank Loan Underwriting Practices: Can Examiners’ Risk Assessments Contribute to Early-Warning Systems?


 		 A bank's total nonperforming assets as a percentage of its' total assets at time t is assumed to be a function of the following four types of information:
  • The bank's financial variables contained in the FDIC's SCOR model, as of time t minus 1.
  • Measures of state economic conditions, as measured by state personal-income growth lagged one top five years.
  • FDIC examiner underwriting survey responses for the bank, as of time t minus 1.
  • The bank's composite CAMELS rating as of time t minus 1
Last Updated 01/13/2004 Questions, Suggestions & Requests