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



 
The third bar chart for Figure 4 shows percent correct of prediction group 3 of the management rating prediction. In 1997, Specification 1 was 26.8 percent. Specification 2 was 34.5 percent. Specification 3 was 46.2 percent. Specification 4 was 48.3 percent. In 1998, Specification 1 was 85.7 percent. Specification 2 was 82.4 percent. Specification 3 was 63.6 percent. Specification 4 was 67.3 percent. In 2000, Specification 1 was 66.7 percent. Specification 2 was 71.9 percent. Specification 3 was 66.2 percent. Specification 4 was 66.0 percent. In 2001, Specification 1 was 74.0 percent. Specification 2 was 73.6 percent. Specification 3 was 72.8 percent. Specification 4 was 76.3 percent.
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