Home > Industry Analysis > Research & Analysis > Working Paper Series > Bank Loan Underwriting Practices: Can Examiners’ Risk Assessments Contribute to Early-Warning Systems?

 

 

 

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



 
A bank's composite CAMELS rating at time t is assumed to be a function of the following four types of information:
  • The bank's financial variables contained in the FDIC's SCOR model, as of time t minus 1.
  • Measures of state economic conditions, as measured by state personal-income growth lagged one top five years.
  • FDIC examiner underwriting survey responses for the bank, as of time t minus 1.
  • The bank's composite CAMELS rating as of time t minus 1.
Last Updated 01/13/2004 Questions, Suggestions & Requests