Introduction to the EBA NPL Templates

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Summary:

The Open Risk Academy course NPL270672 is a CrashCourse introducing the EBA NPL Templates. We start with the motivation for the templates and the domain of credit data (to which NPL data belongs). We discuss three core classes that capture the essence of lending operations from a lenders point of view (Counterparty, Loan, Collateral). Next we explore classes that capture events in the lending relationship lifecycle (which we term NPL Scenarios). We look into the main data types: elementary data types, choice lists, arrays and unstructured text. We close with discussing some more complex issues involving graph and timeseries data.

NPL Templates

Course Level and Type:

Introductory Level Core Level Advanced Level
Non-Technical
Technical CrashProgram
NPL27062

Course Content:

This course is an introduction to the European Banking Authority’s Non-Performing Loan Templates. It covers the following topics:

  • We learn some of the jargon associated with Credit / Loan Data and Non-Performing Loans in particular
  • We learn the main Data Categories (Tables or Classes) such as Counterparty, Loan, Collateral etc
  • We review various NPL Scenarios (Forbearance, Collections, Enforcement) and how those are represented in data
  • We identify the Data Types and Data Classifications (such as by Criticality)
  • We get a glimpse at more complicated extensions (graph structures and timeseries data)

Who Is This Course For:

The course is useful to:

  • Developers
  • Data Scientists
  • Quantitative Risk Managers

How Does The Course Help:

Mastering the course content provides background knowledge towards the following activities:

  • Improved understanding of the context, structure and documentation of the EBA NPL Templates
  • Developing solutions and tools that adopt and implement the templates
  • We will attempt primarily a broad overview of the relevant concepts and do selective and brief incursions into more specific / concrete examples

What Will You Get From The Course:

  • After the course you should have a good overview of the main data concepts, how they relate to each other and how they are translated into data requirements
  • You will be able to confidently embark on a project that involves the EBA NPL templates
  • You will be able to explore more detailed use cases as outlined above

What you will NOT get from this Course:

  • There are of-course many things that we will not cover in this course! On the economic / financial side we stay at the highest level / most common definitions of all concepts.
  • On the technical side we make links with common used technologies (like relational databases) but the course is not an end-to-end description of how such infrastructure (and related API’s) could be designed.
  • We do not touch at all how the data can be used as this requires going deeper into financial concepts and market practices than possible in an initial course.<
  • We focus on the detailed loan level templates rather than portfolio summaries

Course Level and Difficulty Level:

This course is part of the Banking Regulation family , OpenCPM and overlaps with the Data Science family.

  • This is a Introductory Level course in the context of risk management / financial knowledge which means that (to the degree possible) concepts are introduced without assuming much prior knowledge
  • This is a Technical course which means some technology elements around data, schemas, databases and related topics are assumed known and not introduced

If you have not taken an Open Risk Academy course before, the CrashCourse Academy Demo provides a quick overview of the Academy.

Course Material:

The course material comprises the following:

  • Nine interactive readings
  • Embedded quizzes
  • Regulatory Templates and documentation collected at the course repo

Time Requirements and Important Dates

  • The course is self-paced and can be undertaken at any point. Depending on your background knowledge and the degree of exploration of connected topics it requires a commitment of about one or two days.

Where To Get Help:

If you get stuck on any issue with the course or the Academy:

  • If the issue is related to the course topics / material, check in the first instance the Course Forum (Chat)
  • If the issue is related the operation of the Open Risk Academy check first the Academy FAQ.
  • If the issue persists contact us at info@openrisk.eu