Title: Credit risk model applied to the agricultural sector
Authors: Maria Rosa Nieto Delfin - Investigaciones y Estudios Superiores SC (Mexico) [presenting]
Abstract: Credit risk management has been widely studied especially when it comes to managing the risk that banks face for default in payment of credit cards. With regard to the agricultural sector in Latin America, management of default risk has not been analyzed properly. The aim is to apply the CyRCE model developed by the Mexican Central Bank, and so far applied solely to measure credit risk in commercial banks. According to our knowledge is the first time this model is applied in the agricultural sector for Mexico. Some modifications have been made to the original model and it has been empirically applied to a client portfolio of a Peasant Financial Company. The results show risk measures according with those expected by risk managers.