Yet in transactions initiated by consumers, paper - currency and checks - remains the payment system of choice. There were sweeping predictions in the late 1960s and early 1970s that electronic payments would quickly replace paper in the nation’s commerce.
The proposal for an internal rating system recently put forward by the Federal Association of German Banks points in the right direction, namely at making internal bank rating systems comparable by means of default probabilities that arise on account of the division of borrowers into creditworthiness and risk categories.