Loss Given Default (LGD) Term Structure

The LGD Term Structure feature in the LLFP application allows you to change the LGD values over different periods by reflecting the changes in Loan value, collateral value, lien, and so on at an account level granularity. This also helps in obtaining more accurate ECL numbers while calculating the lifetime losses.

The processing of LGD Term Structures has the following four phases:

• Obtaining LGD Data in Staging
• Movement of LGD Data into Processing
• Processing LGD Data as Required for ECL Calculation
• Collective Assessment