Covid credit outlooks for UK banks vary

Standard Chartered and HSBC have worst downside outlooks relative to their own base cases

UK banks model their expected credit losses (ECL) using an array of forward-looking scenarios. The dispersion of these scenario outputs, however, varies wildly from bank to bank, reflecting how the coronavirus is clouding firms’ macroeconomic predictions.

Each bank uses its own set of scenarios, which typically include base case, upside and downside iterations, to ballpark expected losses, and then blends the outputs together to arrive at its modelled ECL amount. Modelled ECL amounts inform the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here