From one extreme to another: Covid upsets loan models once more

Unusual economic slumps tripped up models in 2020. Now, they are struggling with fast recoveries

Image: montage

Twenty-twenty was not a great year for credit models, and this year isn’t looking good either.

When the Covid-19 pandemic shut down businesses and erased millions of jobs almost overnight, credit models went into overdrive, leading banks to overprovision for loan losses. Now, as some major economies bounce back, the same models are spewing out numbers that lenders judge too low. In response, banks are manually adjusting the outputs and making tweaks to the models themselves, to keep back more

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here