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Enhancing The Performance Of Risk-Rating Models At Community Banks

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  • Babetskaya, Lyubov
Abstract
The study identifies important criteria that should be used by lenders in risk-rating of their farm customers. Comparisons of model results are made to assess how robust model results are over time. Linear and logistic regression is used to determine that the debt-to-asset ratio is a major predictor of repayment ability and the asset turnover rate and family living expenses are strong predictors of farm performance.

Suggested Citation

  • Babetskaya, Lyubov, 2001. "Enhancing The Performance Of Risk-Rating Models At Community Banks," 2001 Annual meeting, August 5-8, Chicago, IL 20690, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20690
    DOI: 10.22004/ag.econ.20690
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    References listed on IDEAS

    as
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    6. LaDue, Eddy L. & Lee, Warren F. & Hanson, Steven D. & Hanson, Gregory D. & Kohl, David M., 1992. "Credit Evaluation Procedures at Agricultural Banks in the Northeast and Eastern Cornbelt," Research Bulletins 123076, Cornell University, Department of Applied Economics and Management.
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    9. Fischer, Martin L. & Moore, Karen, 1986. "An Improved Credit Scoring Function For The St. Paul Bank For Cooperatives," 1986 Regional Committee NC-161, October 7-8, 1986, St. Paul, Minnesota 127224, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
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