Line (3) is a situation where it is pure epsilon (relying solely on debit data). This means there's little trust (or NO trust if its perfectly zero slope) in the "f" function of credit bureau data. 2005-2008
Line (2) would be a stage after (3). 2008 to 2012
Line (1) would be a development stage after (2). 2012-2015
Line (4) would be a case where the "f" function would be the full maturation of credit analysis and "e" merely augments.
Remember, epsilon contains OFF credit report data that is critical for an upstart country building a credit system
Also, what is entirely possible is that China NEVER reaches "(4)" because credit is never fully adopted.
Back to Main |