Assessments of individual borrowers usually refer to a time horizon of one year, a practice that most foreign banks also follow. The models in use are not able to take systematic account of the different maturities of operations, while economic theory and experience both indicate that the maturity of loans can have a marked impact on the related credit risks.
5  BIS Review 134/1999  In their risk management procedures, Italian banks are increasingly resorting to models that measure expected losses; they use the results in deciding whether to grant loans and in reviewing credit lines. The distinction between the units that calculate ratings, those that are involved in marketing and those that perform control functions appears to be well drawn.