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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

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