To evaluate loan applicants, banks increasingly use credit scoring models. The objective of such models typically is to … multiperiod contracts for which reason it is important for banks not only to know if but also when a loan will default. In this …

To evaluate loan applicants, banks increasingly use credit scoring models. The objective of such models typically is to … multiperiod contracts for which reason it is important for banks not only to know if but also when a loan will default. In this … applicants with short survival times from those with long survivals. The bank’s loan provision process is shown to be ineffcient …

equation we model the bank´s decision to grant a loan, in the second the probability of default. We confirm that banks provide …

To evaluate loan applicants, banks use a large variety of systems. The objective of such credit scoring models … affective tool to separate applicants with short survival times from those with long survivals The bank´s loan provision process … time maximization. There is thus no trade-off between higher default risk and higher return in the policy of banks. …

equation we model the bank's decision to grant a loan, in the second the probability of default. We confirm that banks provide …