PROBABILITY OF DEFAULT – POOL VS CREDIT SCORE
PROBABILITY OF DEFAULT (PD) UNDER CECL Most financial institutions, such as banks and credit unions, regard the Probability of Default/Loss Given Default (PD/LGD) technique as a reliable method for determining suitable reserve levels in an institution’s loan and lease loss allowance. The PD/LGD method has quickly become the preferred one in the Financial Accounting Standards […]
