(Credit risk and commercial banks) Fourth Second Bank is a l…
(Credit risk and commercial banks) Fourth Second Bank is a large regional bank headquartered Akron, Ohio. Its consumer lending operations use credit scoring to evaluate and monitor loans. After years of growing loans at the same rate as their peers, they revised their scoring model in 2023. Since then, their annual loan growth rate has been 8% versus 4% for their peers. Given this information, you think