Credit scoring and the availability, price, and risk of small business credit

Allen Berger (), W Frame and Nathan H. Miller

No 2002-6, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: The authors examine the economic effects of small business credit scoring (SBCS) and find that it is associated with expanded quantities, higher average prices, and greater risk levels for small business credits under $100,000. These findings are consistent with a net increase in lending to relatively risky ?marginal borrowers? who would otherwise not receive credit, but who would pay relatively high prices when they are funded. The authors also find that 1) bank-specific and industrywide learning curves are important; 2) SBCS effects differ for banks that adhere to ?rules? versus ?discretion? in using the technology; and 3) SBCS effects differ for slightly larger credits.

Keywords: Credit scoring systems; Small business (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-ent, nep-fin and nep-mfd
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Citations: View citations in EconPapers (36)

Published in Journal of Money, Credit & Banking (April 2005)

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Related works:
Journal Article: Credit Scoring and the Availability, Price, and Risk of Small Business Credit (2005)
Working Paper: Credit scoring and the availability, price, and risk of small business credit (2002)
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