Global Credit Data’s PD benchmarking report shows that bank default ratios for global corporate debt have dropped from 1.12% to 0.73% since 2016. On the face of it, this is good news, but could it be masking a corporate debt bubble?
In 2011, the Basel Committee considered some early data from the International Chamber of Commerce Trade Register, suggesting it did not provide sufficient analytical evidence for reducing the CCF in the risk-based approach below 20%.
Our newest report on CCF for Performance Guarantees and Claims – evidence from ICC and GCD, provides new evidence of an average CCF of less than 10%, confirming longstanding claims that the Basel figure might be too conservative.
What do you think? Are trade finance capital requirements too high?
Global Credit Data’s second IFRS 9 benchmarking report confirms banks’ expected credit loss estimates vary by at least factor 4
Global Credit Data, a not-for-profit data-collection initiative jointly owned by more than 50 leading global banks, has today released its second IFRS 9 benchmarking report, with the results highlighting a need for a greater number of banks to participate in the benchmarking process.
GCD is currently concluding a yellow page agreement with various consultant firms who have been working with GCD in the past and are knowledgeable about GCD's data model and/activities. For our members, this will lead to more dedicated studies, focus and working groups. And our newly created Yellow Page section on our website will ease the contact between those partners and the banks.
The year 2019 will be a busy one for all US Banks. With banks, standardsetters and regulators still engaged in a debate about what implementation of the CECL standard for Day 1, there are only 11 month left before public firms “go live” on CECL. The principle-based nature of the standard means that the remaining time needs to be spent on testing assumptions and validating approaches. For many banks, attention is on finalizing implementation plans and to kick-start the parallel run.
SAVE THE DATE: The next North American Conference is hosted by Citibank on September 24 & 25 in New York City.
More details on the agenda will be available in the coming weeks on our website. CECL and the CECL work of GCD (survey plus benchmarking study) will be on the agenda. Please contact any of the GCD Executives if you would like to present during plenary or break-out sessions.