Join us for the next seminar in our FinTech, Values and Society seminar series.
This presentation aims to show the result of the research conducted on the relationship between energy efficiency and the default probability. The correlation analysis suggests that customers that own higher energy efficient properties seem to be less likely to default and to fall into arrears, even after controlling for customer, property, and mortgage characteristics that might affect this relationship. Energy efficient rating is statistically significant after including it in the IRB behavioural scorecard which allows a better allocation of capital according to the energy efficiency of the property. Results are obtained on a sample containing 650,000 residential properties from Nationwide Building Society portfolio.
Cesar Benedi-Bozalongo, Senior Risk Analyst (Secured IRB Modelling), Nationwide Building Society
Zsolt Jaczko, Head of Retail IRB Modelling, Nationwide Building Society
James Hughes, Risk Modeller, Nationwide Building Society.
Please note this event will be recorded.