Evaluating the Evaluators: A Central Bank’s Perspective

On "05/12/2024", the "Bank of Italy" issued an update regarding "Evaluating the Evaluators: A Central Bank's Perspective". The report evaluates the creditworthiness assessment systems used by Italian commercial banks, comparing them to the Bank of Italy's internal model. The study finds that both systems have satisfactory discriminatory power and predictive capacity, but internal bank models tend to be slightly less cautious than the central bank's model for guaranteed loans.