Estimating the financial impact of data quality issues

Banks are required to hold a loan loss provision and equity capital to withstand credit losses from mortgages. Credit data is used to calculate the amounts of provision and equity capital that must be held, but data quality issues hinder the concise calculation of these amounts. This thesis covers a model that can be used to estimate the loan loss provision and equity capital impacts from data quality issues. Knowledge on these impacts allows a bank to prioritise data cleansing efforts, track data quality through time and promote a shared sense of responsibility for data quality.