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



 
The third bar chart for Figure 3 shows percent correct of predicted group 3 of the asset quality rating prediction. In 1997, Specification 1 was 21.7 percent. Specification 2 was 25.6 percent. Specification 3 was 28.3 percent. Specification 4 was 30.1 percent. In 1998, Specification 1 was 57.1 percent. Specification 2 was 51.5 percent. Specification 3 was 48.3 percent. Specification 4 was 50.9 percent. In 2000, Specification 1 was 61.3 percent. Specification 2 was 66.3 percent. Specification 3 was 68.5 percent. Specification 4 was 66.4 percent. In 2001, Specification 1 was 78.3 percent. Specification 2 was 82.9 percent. Specification 3 was 84.7 percent. Specification 4 was 88.0 percent.
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