I completed my FRM Part 1 on may 18th, and I am glad to inform you that I have faired well in the exam all thanks to your material and question sets.

I was just reading the notes on Economic capital in banks, and I was wondering how the probability of default is calculated. I understand it is assumed to be have a binomial distribution. But say for a retail personal loan with no collateral put forward, what would be used to model the probability of default? Please give me your suggestions, and any other material I could refer to.

Thanks again for the help.

-kausthub