RBWM: Concepts and Practice · Part B: Retail Products and Recovery

Chapter 5: Credit scoring

How a bank turns an application into a number, sets a cut-off and a price, and what the bureaus and RBI’s rules add.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 5.1What credit scoring is, and why retail needs itp. 59
• 5.2Bank N’s application scorecardp. 60
• 5.3Scoring, cut-offs and pricep. 61
• 5.4Validation, monitoring and limitsp. 62
• 5.5Credit information companies and RBI’s rulesp. 63
• Exam traps and quick checksp. 64
• Practice: 16 questions in three roundsp. 65
• Answers, with every wrong option explainedp. 67
• Make it stickp. 69
• Chapter 5 on one pagep. 70

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.