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



 
The second bar chart for Figure 3 shows percent correct of predicted group 2 of the asset quality rating prediction. In 1997, Specification 1 was 30.2 percent. Specification 2 was 33.9 percent. Specification 3 was 36.6 percent. Specification 4 was 38.0 percent. In 1998, Specification 1 was 43.8 percent. Specification 2 was 49.9 percent. Specification 3 was 54.6 percent. Specification 4 was 55.8 percent. In 2000, Specification 1 was 54.8 percent. Specification 2 was 62.5 percent. Specification 3 was 70.8 percent. Specification 4 was 71.1 percent. In 2001, Specification 1 was 52.8 percent. Specification 2 was 55.4 percent. Specification 3 was 65.9 percent. Specification 4 was 65.5 percent.
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