Featured Articles | Credit Scoring for Agriculture Lending

Featured articles on credit scoring discuss new tools that agriculture lenders can adopt to improve their risk management techniques. Katia Gortz and Erdal Kocoglu introduce the Agriculture Loan Evaluation System (ALES), a credit scoring model that improves the ability of lenders to measure risk when making loans to farmers. Christoph Jungfleisch builds on the subject by discussing the advantages of using a centralized expert underwriting system to improve risk measurement and reduce operational cost. Dean Caire explains how financial institutions can build scorecards for agriculture lending and highlights how they have been used for agriculture equipment leasing in Europe.

Featured Articles | Credit Scoring

ALES: A Gateway to Commercial Agricultural Lending | Contributed by Katia Görtz and Erdal Kocoglu, FSMS
ALES is a credit scoring tool developed by the Frankfurt School of Finance and Management to assess risk in agricultural lending. Currently, the tool is utilized by banks and MFIs in Turkey and Tajikistan. 

Centralized Expert Underwriting in Agricultural MSE Finance | Contributed by Christoph Jungfleisch, FSFM
This article describes how centralized expert underwriting can help financial institutions reduce operational costs and lower risk spread through refined analysis. The methodology is currently being adapted for agriculture MSEs in Peru and Colombia.

Developing Credit Scorecards for Agriculture Lending: a Modular Approach | Contributed by Dean Caire, CFA, Risk Management Consultant
The author uses the case of a Europe-based international leasing company to illustrate how credit scorecards can be adapted and used for agriculture equipment leasing to small businesses. 

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