Ukmikk
Member of DD Central
Posts: 445
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Post by Ukmikk on Aug 27, 2018 21:35:52 GMT
Hi Proptechfish , Ace , Ukmikk and all, The provisional fund coverage is presented as follow; (Provision fund balance / Total of full principal of all live p2p loans) / Actual missed payment rate @ 30days With the above in mind, the provision fund cover is representative of the PF ability to pay out for all the principal of live loans once they become 30 days late.
Note that actual missed repayment rate used in the equation above is calculated based on actual current performance. Note that loans that are more than 30days on repayment are already bought by the provision fund from the investor. Therefore between 30days late and default, the risk is no longer on the investor. Please also note that the calculation is calculated live and hence the fluctuation with repayments and loan issue. Hope this answers your questions and clarifies. Thanks, Nadeem
Hi nsiam , not sure I understand your formula explanation, could you provide a worked example please so I can keep up. Thanks.
Edit: I think maybe the brackets are in the wrong place.
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Ukmikk
Member of DD Central
Posts: 445
Likes: 298
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Post by Ukmikk on Sept 1, 2018 9:19:54 GMT
So, no further clarification forthcoming. Hmmmmm... nsiam, is there a problem here?
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