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Table 3 Parameters and criteria adopted to classify borrowers according to CBB on-site credit supervision experience

From: To supervise or to self-supervise: a machine learning based comparison on credit supervision

Parameters Description
Banks 12 previous on-site credit supervision performed by CBB
Extraction dates From 2015 to 2018
Good borrowers Considered as AA, A or B by CBB’s on-site credit supervision
Bad borrowers Considered as F, G or H (LLP equal or higher than 50%) by CBB’s on-site credit supervision
Materiality Loans in excess of R$ 200,000a
  1. aApproximately US$ 40,000