Italian commercial banks’ internal risk rating benchmarks largely produce results similar to those of the Bank of Italy’s internal rating system.

In a paper released on December 5, researchers Francesco Columba, Federica Orsini and Stefano Tranquillo examined the ratings for corporate borrowers produced by commercial lenders and compared them with the assessments produced by the central bank.

Both show “satisfactory discriminatory power and predictive ability” as they “evaluate credit risk