Beginning of the year, GCD released its second authoritative report on loss given default (LGD) for large corporate borrowers with a turnover above €50m. According to the data, banks recover, on average, 76% of debts owed by large corporate borrowers after default. This is significantly higher than the 55% recovery rate implemented by the Basel Committee on Banking Supervision for corporate exposure under the foundation IRB approach.
The findings are based on a reference data set comprising 10,737 defaulted borrowers and 18,465 facilities, from 58 lenders worldwide. The fact that the findings are in line with the previous report in 2018 confirms the stability and consistency of GCD’s data sets and the reliability of the long-term estimates.
GCD supports its member banks with protocols, toolings and detailed validation rules, to use the data as efficient as possible. We invite all (new) data users to join our next webinar on July 9th 2019 at 2pm CEST / 8am EST / 10pm AEDT detailing
Login details:
Meeting URL:
https://globalcreditdata.zoom.us/j/703040050
Join by Phone:
NL +31 (0) 20 241 0288 or +31 (0) 70 808 1008
US: +1 669 900 6833 or +1 929 436 2866
Meeting ID: 703 040 050
Further international numbers: https://globalcreditdata.zoom.us/zoomconference?m=_meoWyE9zcxHPmq7tMe7L_lr_puNua4X
Contact person:
Location:
Zoom Call
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