20. Institutions should analyse the representativeness of data in the case of statistical models …

Institutions should analyse the representativeness of data in the case of statistical models and other mechanical methods used to assign exposures to grades or pools, as well as in the case of statistical default prediction models generating default probability estimates for individual obligors or facilities. Institutions should select an appropriate dataset for the purpose of model development to ensure that the performance of the model on the application portfolio, in particular its discriminatory power, is not significantly hindered by insufficient representativeness of data.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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