Predictive Accuracy of Judgmental vs Statistical Approaches to Bank Loan Appraisal: Empirical Evidence from Nigeria

There has been a general concern about the alarming rate of loan default, resulting in a large number of bad and doubtful accounts, in the Nigerian banking industry. To stem this undesirable trend, some observers have advocated the employment of statistical models to enhance the objectivity and, hence, the predictive accuracy of banker's loan decisions.