As the business cycle evolves, how do you determine adequate provisions for credit losses in the performing portfolio? How accurate was your provision allocation through the last cycle? Having consistent results based on recognized best practices is vital to the credibility of your financial institution in the eyes of regulators, investors, and management. Today’s best practice relies on expanding your vision of economic and portfolio events with external data and analytics on your borrowers and markets.
PayNet’s default forecast for local industry sectors provides insight into the expected level of risk over the next two years for each of your commercial borrowers.
Top-down expected loss forecast does not provide sufficient granularity for differential analysis. PayNet’s data allows you to evaluate granular segments of your portfolio performance against the experience found in our database of millions of borrowers.