RDB Model

  • Based on financial statements and qualitative information (e.g. industries), a scoring model to calculate obligor's PD (probability of default) is provided every year for members of the Corporate Business Database.
  • The model building process is based on the large-high quality data collected from the Corporate Business Database. The model's methodology and the results of validation are supplied every year.
  • In the model-building process, RDB has achieved to clear out all the arbitrariness and ambiguities by using a logistic regression model based on statistical approaches. Since the PD is worked-out as estimated figures, it may be used to estimate PD parameters with the IRB approach.
  • The PD is not just highly accreted; it also uses a model building logic which aims to maximize the discriminating power on defaults. This is why RDB Model is utilized widely as standards for assessment of loans.
  • Software applications are provided along to calculate scores and PDs easily on a PC using the RDB Model.