• Risk of default (PD)

  • The service imports the PD value from credit information companies (UC, Bisnode etc)

  • You can enter another value by clicking on the padlock and entering the information

• Loss Given Default (LGD)

  • Calculated automatically by the service.

    • Formula: Total limit minus Collateral value = Unsecured amount. Unsecured amount divided by Total limit gives LGD in percent

    • You can enter a new value for LGD by clicking on the padlock and entering a new value

    • The minimum value for LGD is set via "Settings" / Inställningar by an authorized person at the bank 

• Expected Credit Loss (ECL)

  • Formula: (Total limit * LGD) * PD = ECL

  • Always automatically calculated based on PD and LGD in relation to total limit.

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