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Queries Related To LLFP Batches And Approach (Doc ID 2976493.1)

Last updated on SEPTEMBER 29, 2023

Applies to:

Oracle Financial Services Loan Loss Forecasting and Provisioning - Version 8.0.0 and later
Information in this document applies to any platform.

Goal

Queries on LLFP PD modeling

Q1what is actual purpose of transition matrix run batch after stage determination run batch.

Q2. We already have downloaded pd term structure with cumulative pd from bank so, still do we need to execute PD modelling by creating transition Matrix?

Q3. If we use transition Matrix of using PD modelling sandbox then can we get marginal PD for each scenarios and use them in ECL. Also please confirm how cycle factor of ECONOMIC SCENARIOS parameters are related to weightages of scenarios in Transition matrix definition of PD modelling in LLFP.

Solution

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