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



 
The second bar chart for Figure 4 shows percent correct of prediction group 2 of the management rating prediction. In 1997, Specification 1 was 48.9 percent. Specification 2 was 53.3 percent. Specification 3 was 72.3 percent. Specification 4 was 75.0 percent. In 1998, Specification 1 was 58.3 percent. Specification 2 was 65.2 percent. Specification 3 was 74.4 percent. Specification 4 was 74.7 percent. In 2000, Specification 1 was 62.5 percent. Specification 2 was 67.8 percent. Specification 3 was 77.6 percent. Specification 4 was 77.7 percent. In 2001, Specification 1 was 64.0 percent. Specification 2 was 68.4 percent. Specification 3 was 79.4 percent. Specification 4 was 78.6 percent.
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