Economic Capital for Credit Risk
Background Credit risk is one of the most important risk faced by banks and financial institutions. Therefore, computation of economic capital for credit risk is important aspect of risk management. […]
Expected Credit Loss
Background Expected credit loss (ECL), in simple term, is the amount of loss a bank may suffer by lending to a borrower. In other words, this type of loss arises […]
Early Warning System in Credit Risk Management
Background Early warning system is widely discussed in banking industry, especially in relation to credit risk management. Taking risks is an essential element of banking. But in today’s complex financial […]
Credit Risk Management
Background Risk is the probability of incurring a loss or damage because of actual outcome being different from the expected outcome. This means that, broader the range of possible outcomes, […]