VUB's Market Share and Financial Services

CREDIT SCORING TOOLS Usage of Credit risk models in the Bank The models used in the bank are covering following areas Managerial purposes (Underwriting, Monitoring, Pricing, Provisioning) → Regulatory purposes (RWA calculation) → Generally, the models enter into the processes from the origination of a loan and are used during the whole life-time of a loan as well Approval process for all segments Risk margin calculation and Pricing determination Income of client determination Loan amount determination / Debt capacity setting • • Collateral value revaluation Re-fix of loan interest rate Provisioning RWA and Capital calculation Monitoring of clients and portfolio Origination of a Loan Life-time of a Loan 34 ==

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