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BankNet

BankNet
More resources for national banks

Models and Scoring

When used properly, credit scoring models are effective risk management tools. National banks can use credit scoring models to:

  • Control risk selection,
  • Manage credit losses,
  • Evaluate new loan programs,
  • Improve loan approval processing time,
  • Ensure that existing credit criteria are sound and consistently applied,
  • Improve compliance with the Equal Credit Opportunity Act and the Fair Housing Act, and
  • Improve profitability

Follow the links on this page to regulatory resources related to credit models and scoring.

References

OCC=Bulletin

Credit Scoring Models: Examination Guidance (OCC Bulletin 97-24, May 1997), Guidance
Informs national banks of the OCC's concerns about proper use of credit scoring models

Risk Modeling, Model Validation (OCC 2000-16, May 2000)
Provides guidance for mitigating potential risks arising from reliance on computer-based financial models that are improperly validated or tested