Prospective borrowers from commercial banks are usually made to pass through stringent lending procedure. The screening procedure is intended to forestall likely default intents and reduce credit risks. Banks, through the analysis are able to predict the inherent risk level in the loans they...

Uncertainty is part of life as the quote of Benjamin Franklin clearly states. A distinction should be made between uncertainty and risk. Uncertainty includes all facts in life that do not have a certain outcome and cannot be measured. Risk1 is the measurable counterpart of uncertainty (Knight...