This paper studies loan activity in a context where banks have to follow Basel Accord type rules and need to find financing with the households. Loan activity typically decreases when investment returns of entrepreneurs decline, and we study which type of policy could revigorate an economy in a trough. We find that active monetary policy increases loan volume even when the economy is in a good ...

To screen consumer loan applications, loan officers use many different methods besides intuitive judgment and experience. They use mathematical techniques such as credit-scoring models and traditional statistical models. In addition, many financial institutions use artificial intelligence methods such as expert systems, artificial neural systems, and fuzzy logic. This study proposes the develop...

Reusability is used to reduce the development time by reusing the already developed components and available information. Over the past decade the concept of reusability has been used to solve problems in different areas. In software it is common to reuse software components. Apart from this, reusability can be used in commercial and professional areas like bank loan process. The bank loan proc...

The 31 species of Microctonus Wesmael that occur in North America are taxonomically treated. Six are described as new: M. cappilicrus, M. gouleti, M. passi, M. portalensis, M. rotundatus, and M. sharkeyi. Microctonus zimmermanni Loan is considered a junior synonym of M. brevipetiolatus (Thomson) and M. barri Loan is considered a junior synonym of M. muesebecki Loan. The European Perilitus altic...

There is strong evidence that the interest rates charged by banks on the flow of newly extended Commercial & Industrial (C&I) loans predict future loan performance and CAMEL rating downgrades by bank supervisors. While internal risk ratings have little explanatory power for future loan performance, they do help predict future CAMEL downgrades. These findings suggest that supervisors might consi...

Credit scoring is a kind of binary classification problem that contains important information for manager to make a decision in particularly in banking authorities. Obtained scores provide a practical credit decision for a loan officer to classify clients to reject or accept for payment loan. For this sake, in this paper a data envelopment analysis- discriminant analysis (DEA-DA) approach is us...

We examine the effects of changes in competitive conditions on the structure of loan contracts. In particular, we present conditions in which greater loan market competition reduces the stringency of contractual collateral requirements, a prediction that is consistent with anecdotal evidence from loan markets. We also analyze the interaction between the degree of competition and the efficiency ...

This paper was prepared in cooperation with Mark McCambley and Michael Lavin of Loan Pricing Corporation (LPC). For more information about LPC's Loan Loss Database (LLD) initiatives in North America and Europe, please contact Mark McCambley at 212-489-5455 or [email protected]. The lenders participating in the LLD generously shared the LLD with the Federal Reserve on a one-time basis a...

The ever-changing economic environment is forcing banks to re-evaluate the way loan decisions are made. Several agricultural loan evaluation systems are operational, however, they are not ‘true’ expert systems. While they have all focused on analysing the borrower’s financial position given the current market and economic conditions, most have not taken into account qualitative factors such as ...