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



 
The third bar chart for Figure 2 shows percent correct of predicted group 3 of the composite CAMELS rating prediction. In 1997, Specification 1 was 42.3 percent. Specification 2 was 35.9 percent. Specification 3 was 59.5 percent. Specification 4 was 69.2 percent. In 1998, Specification 1 was 64.7 percent. Specification 2 was 61.9 percent. Specification 3 was 53.5 percent. Specification 4 was 55.8 percent. In 2000, Specification 1 was 55.0 percent. Specification 2 was 62.3 percent. Specification 3 was 64.1 percent. Specification 4 was 63.8 percent. In 2001, Specification 1 was 70.5 percent. Specification 2 was 68.3 percent. Specification 3 was 76.0 percent. Specification 4 was 79.0 percent.
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