GLOSSARY: Credit Risk Trends and Analytics to Tame Delinquencies and Default Rates

Dear, reader

The credit default rate (CDR) of APAC in 2023 is expected to be around 10.0%, according

to Moody’s. This is significantly higher than the global average (CDR) in 2023 and is expected to be around 2.9%, according to S&P Global Ratings. Recently Reserve Bank of India (RBI) has increased the risk weights on unsecured consumer loans, including credit cards, by 25 percent for both banks and NBFCs.

In response to the unprecedented growth in unsecured retail loans and the consequent concerns regarding rising systemic risk, lenders need to be extra cautious as delinquencies and default rates tend to increase. Safeguarding your portfolio should be your top priority. That means you require a throughout data-driven approach for credit risk assessment. Then your credit-decision model should be the reflection of the same and needs to be continually fine-tuned.

Bookmark Credit Risk Trends and Analytics, a three-part webinar series on credit risk analytics with a focus on the pain points of developing models that reflect the driving economics.