# Expected default rate

- Canonical URL: https://www.gerhardmerk.de/expected-default-rate
- Post ID: 591303
- Modified: 2023-07-25T20:59:33+00:00
- Language: en

## Definition

Unless otherwise defined, the probability that a borrower will be unable to service the debt at his bank within one year. It is up to the individual bank to use a shorter period - often ninety days - for accounting purposes. - See default, default-loss, Basel-II, default, delinquent, credit event, loan shark, credit risk, customer, bad, liquidity management, mark-to-market, rating, risk transparency, risk profile, delinquency rate, debt, non-performing, subprime lending, backing, validation, value-at-risk, securitization, procyclicality, default, cyclicality. - Cf. ECB Monthly Bulletin, August 2002, p. 67. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0