Time for a check-up of your credit scoring system
Article Abstract:
Financial institutions can effectively manage and monitor their credit scoring systems through regular check-ups. Check-ups can help them prepare for the next regulatory examination while boosting the portfolios' overall profitability. According to a May 1997 bulletin issued by the Office of the Comptroller of the Currency (OCC) to all OCC examiners and national banks, properly implemented credit scoring can be useful in managing credit losses, controlling risk selection, assessing new loan programs, expediting loan approval processing, bolstering profitability and improving compliance with fair lending laws. The bulletin, titled 'The Potential Benefits and Risks of Credit Scoring Models,' also identifies potential credit scoring pitfalls and offers recommendations to specific concerns. A seven-point checklist addressing these concerns is presented.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1997
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New addition to your collection tool kit
Article Abstract:
Credit managers should check delinquent customers' credit reports to assess chances for collection. Tax liens, bankruptcy filings, and criminal records are signs that collection will be difficult and time consuming. Credit managers can get help with collections by using credit bureaus, which now offer services that locate delinquent customers and identify troubled accounts.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1989
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