DC

Digital Credit Precision Analyzer

Balance Sheet Exposure & Capital Adequacy Stress Tester
Digital Credit Exposure $1,250.00M 25.0% of Balance Sheet
Net Interest Income (NII) $122.19M Net Yield: 2.44% Total
Expected Credit Loss (ECL) $16.50M LGD: 55.0%
Risk-Weighted Assets (RWA) $1,500.00M RWA Density: 30.0%
Tier-1 Capital Ratio 11.64% Regulatory Threshold Met

Net Interest Income Waterfall & Impairment Bridge ($M)

Gross Yield
Expense/Loss
Net Result

Executive Balance Sheet Assessment

Under current assumptions, a $1,250.00M allocation to digital credit generates $122.19M in net interest income after deducting $16.50M in expected credit losses. Total Risk-Weighted Assets stand at $1,500.00M, yielding an effective Tier-1 Capital Adequacy Ratio of 11.64%.

Trace allocation, expected loss and this source income convention

Read the explanation

This explainer traces the saved simulator equations, not current financial advice or an audited bank. A five thousand million dollar balance sheet allocates twenty-five percent to digital credit, giving twelve hundred fifty million. A hypothetical forty percent allocation gives two thousand million. Both bars use point two five pixels per million dollars. The remainder stays in the traditional bucket. These are source assumptions controlled by the allocation slider. Expected credit loss multiplies digital value by default probability and one minus recovery. At twelve hundred fifty million, a two point four percent default probability and forty-five percent recovery produce sixteen point five million expected loss. Raising recovery to seventy percent reduces loss to nine million, holding the other source inputs fixed. Both bars use twenty pixels per million dollars. The expression is a simplified expectation, not a forecast or a complete loss distribution. The default source gross income is two hundred sixty-three point seven five million: digital income one hundred forty-three point seven five plus traditional income one hundred twenty. Funding costs are one hundred twenty-five point zero six million. Subtracting funding and the sixteen point five million expected loss leaves one hundred twenty-two point one nine million, which this simulator labels net interest income. Both bars use two pixels per million dollars. Notice that the label includes credit loss subtraction, and the effective capital ratio uses total balance sheet as its denominator rather than risk-weighted assets. Those conventions remain unchanged.

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