Credit Data infrastructure
Credit Data Infrastructure denotes the entirety of Hardware and Software along with Information Technology personnel, organisational structure, business process etc. that support Credit Data information flows (Data Generation Process, Data Sourcing, Risk Data Aggregation) within the organization that are relevant for Credit Risk Management activities
The (usually off-the-shelf) software and hardware components comprising the Data Infrastructure are
- Compute Clusters
- Desktop PC's
- Mobile devices
- Software systems
- Desktop applications
Issues and Challenges
- Data infrastructure plays a crucial role in supporting the organization's Risk Data needs, e.g. in the relation to Data Quality
- Data information flows within the organization may involve many tailor made processes for data entry, ETL processes, analytics, modelling and reporting
Institutions should have appropriate data infrastructure as well as relevant policies and procedures to support the credit-granting process and for the purposes of credit risk management and monitoring throughout the life cycle of the credit facilities (e.g. loan origination and creditworthiness assessment, risk assessment, credit review and monitoring).
The data infrastructure should ensure the continuity, integrity and security of information on the exposure, borrower and collateral, from the point of origination and throughout the life cycle of the credit facility.
The data infrastructure should be detailed and sufficiently granular to capture specific loan-by-loan information, in particular actual credit-granting criteria applied at the point of origination, allowing data regarding the borrower to be linked with data regarding collateral, to support the effective monitoring of credit risk (see Section 8) and enable effective audit trailing, operational and credit performance and efficiency measurement, as well as the tracking of policy deviations, exceptions and Overrides (including credit/transaction rating or scoring overrides).
For the purposes of designing and maintaining this data infrastructure, institutions should consider using the relevant data fields from the EBA’s NPL transaction templates
- EBA, Guidelines on loan origination and monitoring EBA/GL/2020/06