Fintechs are believed to help expand credit access to underserved consumers without taking on additional risk. We …-practice minimum NPL ratio, the excess NPL ratio, and a statistical noise, the former two of which reflect the lender's inherent credit … are driven by inherent credit risk, rather than lending inefficiency. Smaller banks are less efficient. In addition, as of …

. The first is the best-practice minimum ratio that a lender could achieve if it were fully efficient at credit …) and the minimum ratio that gauges the lender’s relative proficiency at credit analysis and loan monitoring. The third is … inherent credit risk, and the highest lending efficiency, indicating that their high ratio of nonperformance is driven by …

proficiency of credit analysis and loan monitoring), and the statistical noise. Stochastic frontier techniques are used to … lending could a lender achieve if it were fully efficient at credit-risk evaluation and loan management? The frontier …. The conditional minimum ratio can be interpreted as a measure of inherent credit risk. The difference between the observed …

ratio a bank would experience if it were fully efficient at credit-risk evaluation and loan monitoring, represents the … inherent credit risk of the loan portfolio and is estimated by stochastic frontier techniques. We apply the technique to 2013 … credit risk of their lending is the highest among the five groups. On the other hand, their inefficiency at lending is one of …

credit-risk evaluation and loan monitoring, represents the inherent credit risk of the loan portfolio and is estimated by a … nonperformance among the five groups. Moreover, the inherent credit risk of their lending is the highest among the five groups. On …. Small community banks under $1 billion also exhibit higher inherent credit risk than all other size groups except the …