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. CMRC works with major lenders, organizations associated with the credit information infrastructure, through to the ‘distressed debt’ market, debt buyers and collections and recovery operations. The credit industry and credit markets form the key focus areas for committed and state-of-the-art research and the dissemination of information and analytics. CMRC’s research on corporate lending and business to business trade has gained international recognition as well as informing policy making within the UK. 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. During its 10 year history, CMRC has built up some impressive data-bases on the UK corporate and SME sector along with detailed case histories of the changing practices governing debt management, collection and recovery.

 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 modeling;
Basel II Advanced IRB models;
Commercial lending; SME Financing
Private Equity and Corporate Risk
Governance, Director Characteristics and Performance
Business to business trade (domestic and export);
Credit Services (Credit information, credit insurance, factoring, debt collection)   

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.

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.