The financial strength of Deutsche Bank has been the subject of main stream financial news throughout this year. Analysts have been commenting on the bank’s likelihood of default, its ability to maintain ratings, to make money and increase capital, in light of litigation woes, downsizing,
Basel III Credit Risk – Standardized Approach. The Basel III standard issued by BIS has been up for discussion and debate. BIS issued a first consultative paper on the revisions to the standardized approach to credit risk in December 2014. A second consultative paper was
Presenting credit memo for credit committee approval The credit committee or loan committee review meeting is the final trial by fire for the loan proposal (credit memo) prepared by the loan officer and the credit analyst. While credit risk as a function and a business
Loan officer skill sets. Between a credit analyst and a relationship manager. A successful loan officer (credit analyst and/or relationship manager) wears many hats. Sourcing is his first hat. To be on the lookout for customers with the right profile and numbers who are looking for
Potential Future Exposure – PFE – Calculations for an Interest Rate Swap. When it comes to counter party credit risk there are two credit exposure calculation methods that we frequently see in term sheets and internal risk reporting. Pre Settlement Risk Exposure (PSR or PSRE) and
Credit Risk Models. PD Modeling using structured approach This is the first post in a multipart series on credit risk models. By the time we are done with this series you should be able to calculate the probability of default for Barclays Bank (and if you really want
Barclays Bank – Probability of default trend-line – Is Barclays Bank going under or not? While some of us thought that Barclays Bank would actually go under at the height of the Libor crisis here on this site, it appears that we were over optimistic.
Ratio analysis case study – Staples & Office Depot Staples is one of the largest retailers of Office Supplies in the US. In 1999, its Sales amounted to $7 billion while Net Income was $185 million, up $18 million from the previous year. The firm