Project Title: Borrower Risk Rating Models for corporate and SME borrowers
Problem: The existing rating models of the bank were not adequate to properly assess the credit risk of borrowers. The Regulators had conveyed their displeasure.
Solution: It involved the following-
- Study of the bank’s credit portfolio, existing products and in house expertise
- Developing and designing rating models and supporting manuals for corporate and SME borrowers.
- Development of excel based macros to support the designed models
- Corporate rating models were customized for manufacturing, services and trading sectors.
- Back testing of the models
- Conducting workshops for concerned credit officers/managers explaining the process and ensuring uniform implementation
Client – Pan Asia Bank, Sri Lanka
Year – 2018