Article 2
Methodology for the calculation of the default rate of loans offered on a crowdfunding platform
1. For the purposes of the disclosure referred to in Article 20(1), point (a), of Regulation (EU) 2020/1503, crowdfunding service providers shall calculate the simple average of the observed 1-year default rate over the entire historical observation period using non-overlapping 12-month observation windows.
2. For the calculation of the 1-year default rate referred to in paragraph 1, crowdfunding service providers shall ensure all of the following:
|
(a) |
that the denominator consists of the number of non-defaulted loans observed at the beginning of the 12-month observation window; |
|
(b) |
that the numerator includes all loans considered in the denominator that had at least one default event during the 12-month observation window. |
3. For the purposes of paragraph 2, loans for which no payment is scheduled in the payment schedule during the 12-month observation period shall be excluded from the data set used to calculate the default rate for that period.
4. For the purposes of paragraph 1 and irrespective of whether a crowdfunding service provider is using external, internal, or pooled data sources, or a combination of the three, the length of the underlying historical observation period used shall be at least 36 months for at least one source. Where the available observation period spans a longer period for any source, that longer period shall be used. A crowdfunding service provider that has been in operation for less than 36 months shall use the period over which it has been in operation.
5. Crowdfunding service providers shall disclose the denominator and numerator used to calculate the 1-year default rate in accordance with paragraph 2 for the period determined in accordance with paragraph 4.