An LGD model assesses the value and/or the quality of a security the bank holds for providing the loan – securities can be either machinery like cars, trucks or construction machines. It can be mortgages or it can be a custody account or a commodity. The higher the value of the security the lower the LGD and thus the potential loss the bank or insurance faces in the case of a default. Banks using the A-IRB approach have to determine LGD values, whereas banks within the F-IRB do only have to do so for the retail-portfolio. For example, as of 2013, there were nine companies in the United Kingdom with their own mortgage LGD models. In Switzerland there were two banks as of 2013. In Germany many thrifts – especially the market leader Bausparkasse Schwäbisch Hall – have their own mortgage LGD models. In the corporate asset class many German banks still only use the values given by the regulator under the F-IRB approach.