Apartment loans represent a large proportion of retail loans. CRD Association is now developing the "Data Accumulation and Scoring System of Apartment Loans" (DaSCORE-APL), which is a system that enables the efficient credit management of apartment loans.
Financial institutions face the following problems related to the credit management of apartment loans. First, an adequate database of apartment loans does not exist, so analysis of apartment loans is difficult. Second, they do not have common criteria for evaluating credit risk, so they assess loans without such criteria. Third, a stylized method of portfolio evaluation has not been established.
To support credit management among members, the apartment loan database service using DaSCORE-APL provides the following solutions for these problems. 1) This service constructs a standard database by accumulating data related to apartment loans. 2) This service realizes standardization of evaluation criteria by making earnings and expenses for each building. 3) This service establishes a stylized method of credit management and evaluation of a portfolio of apartment loans.
The apartment loan database service will commence at the end of 2015.
DaSCORE-APL is expected to play the following roles in the credit management of apartment loans.
If members participate in the apartment loan database, they can use DaSCORE-APL.
Expected business flow