Our Scans · (FS.7.05) Rating Agencies · Weekly Summary

• [New] Bank of America uses LLM-based risk assessment models to assess credit risk accurately and lower default rates and bad debt. Softweb Solutions
• [New] Nationwide has already eyed its contact center, credit risk assessment, economic crime monitoring, its virtual assistant Arti, and CO2 emissions reporting as areas where generative AI might play a greater role in supporting staff. IT Pro
• [New] The Croatian National Bank further specifies supervisory requirements through secondary legislation and supervisory practice, including rules relating to credit risk classification, impairment and provisioning, collateral valuation, outsourcing, large exposures, and regulatory reporting. CEE Legal Matters
• The internal debate inside Chinese banks is no longer whether satellite remote sensing works for credit risk, but whether to buy data, lease a satellite, or launch one. TerraWatch Space Newsletter
• Denmark's Financial Supervisory Authority has called on banks to improve their ESG credit risk reporting through stronger governance, enhanced risk assessments, and improved internal controls. We Mean Business Coalition
• Hybrid GA-BP and SAT-GNN neural networks achieved accuracy up to 97.94% and AUC scores up to 0.952 in credit risk early warning systems, with substantial recall improvements over benchmark models. RiskInMind
• In a world where almost every financial activity incorporates credit risk - that of a state, a central bank, an intermediary - gold remains the only asset without a counterparty. Al Jazeera
• Atom Bank has chosen Provenir's AI decisioning platform to enhance its credit risk decisioning and data orchestration capabilities across its consumer and business banking products. Fintech Singapore
• Forestry is a key sector for assessing tariff sensitivity, as US lumber tariffs predate the broader trade conflict and provide an early indicator of how trade barriers feed through to credit risk. Credit Benchmark
• Uncertainties surrounding tariffs continue to weigh on economic activity, particularly in sectors reliant on the United States, with a potential impact on borrower credit risk and direct exposures to sectors such as US real estate. European Central Bank
• Regulators in the US are already proposing to phase out the use of internal models for credit risk and operational risk. Finance Watch | Making finance serve society
• Credit risk is effectively zero because every holding carries the full faith and credit of the U.S. government. Yahoo Finance
• The reported share of rejected loan applications has increased for SMEs, driven by developments in Germany, with banks pointing to higher credit risk for smaller firms. European Central Bank
• Equity and credit risk premia remain near historic lows in most markets including Australia. Reserve Bank of Australia
• Taking equity risk rather than credit risk With global spreads still tight, we do not think investors are being paid enough to take excessive credit risk as the Middle East conflict may impact growth in various regions. Citi Wealth - Market Insights & Financial Education
• DUAL UK, the underwriting arm of Howden Group Holdings, has launched a new Credit Risk Insurance solution aimed at helping clients manage the challenges associated with cross-border trade and investment. ReinsuranceNe.ws
• In a new study by trade credit risk management company, Coface, shows that over the next five years, the Arctic region's commercial potential will remain limited despite changes in navigation conditions due to climate change. Asia Insurance Review

Last updated: 09 July 2026