Creative solutions for unique problems

Credit risk management systems are surprisingly sophisticated at many Nordic banks. Ellen Leander examines the changes being made to existing infrastructure to keep that edge.

Their home economies may be small, their loan portfolios not very diversified and their potential customer base somewhat limited, but banks in the Nordic region are easily among the most advanced in Europe in their peer group when it comes to credit risk measurement and management. Indeed, bankers say it is these very limitations that have driven the region’s financial institutions to pursue the development of more sophisticated credit risk practices. And yet, these same banks have not taken