GCD's Mission is to help banks understand and model credit risks. The comprehensive data pools are collected over a decade and distributed back to members for their own research and modelling.

 

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GCD is a unique data consortium that owns banks internal data for both PD and LGD. GCD’s data pools support the key parameters of banks’ credit risk modelling: Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD).

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GCD’s library gives access to wide variety of publications on risk related topics. Global Credit Data members work together to analyse the data and discuss methodology issues. GCD has published numerous papers and is actively promoting academic research on the data collected.

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Members not only benefit from exclusive rights and access to credit databases and analytics, but also from knowledge and research facilitation possible via the unique industry association.

Through a variety of forums such as workshops, webinars and surveys, GCD is an active industry participant facilitating the discussion in key strategic areas.

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Global Credit Data collects raw data from its members and distributes it back to them for use in their own analysis and modelling. GCD supports its members by providing a flexible high-end tool on the data pool: the GCD Visual Analyzer. Member banks can create dynamic Reference Data Sets and generate instant views on the data.

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CCF for Performance Guarantees and Claims – evidence from ICC and GCD

Description:

ICC members active in trade finance have collected large scale data on the claim and drawing rates of Performance Guarantees (i.e. Bid, Advance Payment, Performance and Retention) and financial guarantees, showing very low drawing and pay out rates, due to the nature of  these products which only pay out when there are failures in the underlying contract/agreement 

GCD members have collected similar data on the drawing rates of performance bonds and guarantees after the obligor has gone into default. This data shows higher but similar drawing rates, reflecting that even after a company defaults, most commercial guarantees do not need to be claimed as either the underlying contractual obligations have been carried out to the satisfaction of both parties to the commercial contract or the business ceases and both parties have come to a mutual agreement without a claim under the guarantee being enforced.

These data together support an average Credit Conversion Factor (CCF) of less than 10% which in turn supports the maintenance of a 20% downturn EAD when calculating Risk Weighted Assets for capital purposes.

You can donwload it on ICC Website here