International Journal of Mathematics, Statistics, and Computing
Vol. 3 No. 1 (2025): International Journal of Mathematics, Statistics, and Computing

Application of Expected Loss (EL) for Loan Loss Estimation Based on Loan Term Using Simulation Data

Tenripada, Andi Sakinah Yan (Unknown)

Article Info

Publish Date
03 Feb 2025

Abstract

This study aims to evaluate the effect of loan tenor on loan loss estimation using the Expected Loss (EL) model. Through this simulation data calculation, various scenarios with varying loan tenors show that loan tenors have a significant influence on the calculation of Expected Loss (EL). Longer tenors tend to increase the Expected Loss (EL) due to an increase in credit risk over time. The calculation results provide important implications for financial institutions in setting lending policies and managing credit risk.

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Journal Info
International Journal of Mathematics, Statistics, and Computing
Website

Abbrev

ijmsc

Publisher

Communication in Research and Publication

Subject

Computer Science & IT Mathematics

Description

International Journal of Mathematics, Statistics, and Computing (IJMSC) is an official journal of the Communication in Research and Publications (CRP) and publishes original research papers that cover the theory, practice, history, methodology or models of Mathematics, Statistics, and Computing ...