27. Within the PD model the representativeness of data used in developing the model for risk …

Within the PD model the representativeness of data used in developing the model for risk differentiation does not require that the proportion of defaulted and non-defaulted exposures in this dataset be equal to the proportion of defaulted and non-defaulted exposures in the institution’s application portfolio. However, institutions should have a sufficient number of defaulted and non-defaulted observations in the development dataset and they should document the difference.

4.2.4 Representativeness of data for calibration of risk parameters

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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