Portfolio analytics: vintages, migration and concentration

Module 01 / 5 · 65 min · Free preview

Read the whole loan book as a portfolio: quality indicators, vintage, migration and roll-rate analysis, concentration and the quality of the data underneath.

In this module you will learn to

Compute and interpret the NPL ratio, past-due buckets, provision coverage and sector mix of a loan book
Build vintage, migration and roll-rate tables and use them to forecast new NPLs
Measure concentration with the Herfindahl index and the top 20 borrower share
Find connected borrowers and data errors that distort portfolio figures

Built on

Erudite Africa course specification: 1.f Loan Portfolio Management, Training Module: Ethiopian Context (October 2026)
Erudite Africa: Ethiopian regulatory register in the Training Module: Ethiopian Context (October 2026)
NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/95/2025; NBE Risk Management Guidelines (May 2010); NBE MPC meeting No. 7 press release (July 2026)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
IFRS 9 Financial Instruments
Movable Property Security Right Proclamation No. 1147/2019; the law on property mortgaged or pledged with banks (reported as Proclamation No. 97/1998)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.