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Research
The efficient functioning and dynamic of credit and debt markets is vital for global economic growth. Recent events (‘Credit Crunch’) have focused much attention on the quality of lending decisions, portfolio management and the role of the regulators. CMRC works closely with the credit industry. This includes major lenders, organizations associated with the credit information infrastructure, through to the ‘distressed debt’ market, debt buyers and collections and recovery operations. The credit industry and credit markets form the key focus areas for committed and state-of-the-art research and the dissemination of information and analytics. CMRC’s research on corporate lending and business to business trade has gained international recognition as well as informing policy making within the UK. Governments have a considerable debt management function, not least the collection and recovery of tax revenues. CMRC, through the National Audit Office has played an important role in informing government on best practices in debt management. During its 10 year history, CMRC has built up some impressive data-bases on the UK corporate and SME sector along with detailed case histories of the changing practices governing debt management, collection and recovery.
The research of the CMRC focuses on three main areas:
Consumer credit
- Credit and debt in the Economy;
- Bankruptcy modelling and forecasting;
- Financial institutions, large volume lenders and credit and debt management;
- The role and development of the credit services industry (credit information, distressed debt management)
- The regulation of credit markets
Commercial Credit
- Commercial risk and insolvency modeling;
- Basel II Advanced IRB models;
- Commercial lending;
- Private Equity and Corporate Risk
- Business to business trade (domestic and export);
- Credit Services (Credit information, credit insurance, factoring, debt collection)
Credit scoring and customer propensity modelling
- Application and Behavioural Scoring (Methods and Applications);
- Debt Pricing;
- Customer Propensity Models.
The research agenda for the next five years continues with these major themes, builds on and strengthens existing work, and develops new avenues of research.
