Downturn LGD Study 2020
This Global Credit Data (GCD) study looks into the historical effects of previous downturns on bank credit losses across various debtor types, industries and regions, with a view to helping banks understand not only the high-level impacts of a downturn, but also how credit risk drivers are impacted, including sector specific impacts across different portfolio types. Combined with banks’ independent inputs for key risk drivers – including macroeconomic forecasts, portfolio biases, and the differences between the current and previous crises – the data in this report equips banks with the fundamental tools necessary to make accurate adjustments to their credit loss estimates for the COVID-19 crisis.
