EU 27 and Expected Loss: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create the page. Source: The Treasurer, November 2016, p11.)
 
imported>Doug Williamson
(Create the page to replace Expected loss page.)
 
Line 1: Line 1:
The 'EU 27' refers to the 27 member states of the European Union (EU) which exclude the United Kingdom (UK).
''Credit risk evaluation - banking.''


The term arises from the UK's 'Brexit' decision to leave the EU.
(EL).


Expected Loss is a regulatory calculation of the amount expected to be lost on a credit risk exposure within a 12-month timeframe.


== See also ==
It is calculated as:
* [[Brexit]]
 
* [[European Union]]
EL = PD x EAD x LGD
__NOTOC__
 
 
Where:
 
EL = expected loss
 
PD = probability of default %
 
EAD = exposure at default
 
LGD = loss given default %
 
 
==See also==
*[[Capital adequacy]]
*[[Default]]
*[[Exposure At Default]]
*[[Loss Given Default]]
*[[Probability of Default]]

Revision as of 16:18, 12 November 2016

Credit risk evaluation - banking.

(EL).

Expected Loss is a regulatory calculation of the amount expected to be lost on a credit risk exposure within a 12-month timeframe.

It is calculated as:

EL = PD x EAD x LGD


Where:

EL = expected loss

PD = probability of default %

EAD = exposure at default

LGD = loss given default %


See also