LGD meaning in Messaging ?

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Answer:

What is Loss Given Default mean?

Loss given default or LGD is the share of an asset that is lost if a borrower defaults.

It is a common parameter in risk models and also a parameter used in the calculation of economic capital, expected loss or regulatory capital under Basel II for a banking institution. This is an attribute of any exposure on bank's client. Exposure is the amount that one may lose in an investment.

The LGD is closely linked to the expected loss, which is defined as the product of the LGD, the probability of default (PD) and the exposure at default (EAD).

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Posted on 08 Nov 2024, this text provides information on Miscellaneous in Messaging related to Messaging. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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Miscellaneous in Messaging


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