EUWA 2018 and Expected Loss: Difference between pages

Revision as of 15:35, 15 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 %

@@ Line 1: / Line 1: @@
-''UK - European Union - Brexit.''
+''Credit risk evaluation - banking''
-The EUWA 2018 is the UK's European Union (Withdrawal) Act 2018.
+(EL).
-The EUWA 2018 was amended by the European Union (Withdrawal Agreement) Act 2020.
+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:
-== See also ==
+EL = PD x EAD x LGD
-* [[European Union (Withdrawal) Act 2018]]
-* [[European Union (Withdrawal Agreement) Act 2020]]
-* [[Exit day]]
-* [[Hard Brexit]]
-* [[IP completion day]]
-* [[Withdrawal Agreement]]
-[[Category:Accounting,_tax_and_regulation]]
-[[Category:The_business_context]]
+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]]