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



 
The second bar chart for Figure 2 shows percent correct of predicted group 2 of the composite CAMELS rating prediction. In 1997, Specification 1 was 57.3 percent. Specification 2 was 64.7 percent. Specification 3 was 83.2 percent. Specification 4 was 83.5 percent. In 1998, Specification 1 was 65.8 percent. Specification 2 was 72.5 percent. Specification 3 was 84.7 percent. Specification 4 was 84.7 percent. In 2000, Specification 1 was 67.3 percent. Specification 2 was 73.5 percent. Specification 3 was 84.9 percent. Specification 4 was 84.8 percent. In 2001, Specification 1 was 67.6 percent. Specification 2 was 69.2 percent. Specification 3 was 81.5 percent. Specification 4 was 80.2 percent.
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