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The history is supplemented by micro- and macroeconomic boundary parameters, which are often drivers of the default. Customer and contract data are placed in an overall economic context.
The recovery data base database can be used as underlying for statistical methods for PD and LGD calculation. It is part of the result layer which entails already today contains various data marts for specific analyzing analysing purposes.
The performance database created in this way, is then used as the basis for classic approaches as well as machine learning.
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For stage 3 impaired deals, the recovery data base entails database contains the expected recovery cash flows as well as real payments.
This data mart shows how much recovery compared to the expectation expected recovery has actually has been achieved.
The recovery data base database contains following data:
- Info Information on all direct costs which happened after incurred after the moment of default on observed account/client (all collection costs - letters, SMS, FTE collection costs etc.; lawyer costs, court fees, ...)
- All payments/cash flows which happened starting incurred, starting from the moment of entering default - must be allocated to the source - debtor, co-debtor, collateral ID.
- All info information on collateral which are needed for SRP calculation - Market valuemarket values, type, location, size, ID, info on all re-evaluations and it´s datedates, internal haircuts, etc.
- Effective interest rate in the moment of entering default as all costs and recoveries which happened after default are discounted using that rate to at the moment of default.
- All mentioned inputs are available for the history and are connected to the exact Customer ID and Account ID together with the date when any event occurred (payment, costs, reevaluation, change of haircut).
In case If the real payments, which are automatically delivered to the solution, do not reflect the actual situation, users have the option to capture option of manually capturing real payments which will be uploaded into the data mart. For manually captured A list is available for real payments captured manually in the past a list is available. It is possible to delete records in the list. Such "corrections" will be considered again from the next run of the data mart again.