The scoring and rating program tools provided by EuroRisk Systems Ltd. due to the Basel III reqiurements for retail and corporate bank customers.
The retail scoring system encompasses rating assessment of the borrower's credit standing, of the collaterals quality and final of the credit application. The rating evaluation is decisive for loan conditions and precedes the permission for a loan on the part of the bank.
Private or corporate rating evaluation is based on calculated ratios from balance sheets for the last three years (hard facts) and on estimates of management quality, industry sector, personal characteristics (soft facts) etc. The result is a rating within internal rating scale which can be mapped to a standard rating scale (Moody, S&P, Fitch).
Rating and scoring calculations in Risk Framework following main tasks: