Research with impact
The efficient functioning of credit and debt markets is vital for global economic growth. The financial crisis and recession have focused much attention on the quality of lending decisions, portfolio management and the role of the regulators.
CMRC works closely with the credit industry and provides research that informs policy. Members of the Centre work with major lenders and organisations associated with the credit information infrastructure, including those in the ‘distressed debt’ market, debt buyers and collections and recovery operations.
Governments have a considerable debt management function, not least the collection and recovery of tax revenues. CMRC, through the National Audit Office has played an important role in informing government on best practices in debt management.
Since inception, CMRC has built up some impressive databases on the UK corporate and SME sector along with detailed case histories of the changing practices governing debt management, collection and recovery.
CMRC’s research on corporate lending and business-to-business trade has gained international recognition as well as informing policy making within the UK.
The research of the CMRC focuses on three main areas:
- Consumer credit
- Credit and debt in the economy
- Bankruptcy modelling and forecasting
- Financial institutions, large volume lenders and credit and debt management
- The role and development of the credit services industry (credit information, distressed debt management)
- The regulation of credit markets
- Commercial credit
- Commercial risk and insolvency modelling
- Basel II Advanced Internal Ratings Based models
- Commercial lending
- SME Financing
- Private equity and corporate risk
- Governance, director characteristics, board diversity and company performance
- Business-to-business trade (domestic and export)
- Credit services (credit information, credit insurance, factoring, debt collection)
- Dynamic Panel and other advanced econometric methods applied to corporate panel data
- Credit scoring, risk and propensity modelling
- Application and behavioural scoring (methods and applications)
- Survival, hazard and competing risk models
- Discrete time and continuous time hazard models
- Debt pricing
- Customer propensity models
Our Research Excellence Framework (REF 2014) research case study details how research by the CMRC has directly influenced UK government policy and regulation, leading to the development of tools and guidance to alleviate short and long-term financing problems for large and small businesses and organisations.
Professor Nick Wilson's blog post on CMRC's research investigates how small knowledge-intensive firms grow and how this is affected by the so-called ‘equity gap’. ‘The equity gap and knowledge-based firms’ report was used by the Government in the development of a new tax-advantage venture capital policy that was announced in the 2015 Summer Budget.
You can see a list of our publications page by visiting Centre Director Professor Wilson’s staff profile. This includes examples of our published research, including academic journal articles and policy reports.
The research agenda for the next five years continues with these major themes, builds on and strengthens existing work, and develops new avenues of research.
If you are interested in working with CMRC, contact us.