Global Recovery Rate
Categories: Econ, International
The Global Recovery Rate (GRR) can refer to two things:
One: in the more general sense, the global recovery rate refers to the proportion of lending that is recoverable by lenders if their borrower(s) default on loans. When people default on their loans...like if someone can’t pay their mortgage...then the lender will do whatever it can to recoup that loss (like by selling the house).
Two: in the more specific and oftentimes “official” sense, the GRR is a measure of how much lending is recoverable by lenders due to fraud specifically. For instance, the often-cited Pricewaterhouse Cooper (PwC)’s annual Global Economic Crime Survey summarizes how many firms experience losses from fraud (in 2018, almost half), and how much those firms were able to recuperate.
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