Figure 1 is a schematic diagram that shows the structure of the Loss Distribution Model (LDM), the various component models and parameters that feed into the LDM model, and the main outputs of the LDM model. Starting at the top of the diagram, there are three separate boxes with the following labels: Bank Failure or PD Model, Loss Rate or LGD Model, and Deposit Growth or EAD Model. These three boxes represent the three initial LDM model parameters. Arrows from each of these three boxes point both to the right toward a box titled Economic Model and directly downward to another box titled Simulations. The arrows pointing toward the Economic Model box indicate that the LDM model parameters PD, LGD, and EAD are fed into an economic model, which estimates subsequent changes in these initial parameters. The Economic Model box also has an arrow pointing leftward toward the Simulation box to indicate that the output of the economic model feed into the simulation. To the right of the diagram is another box titled Interest Rate Model, which also has an arrow pointing to the Simulation box. This interest rate model is needed in the simulations to calculate a discounted value for loss estimates. In summary, the simulations depend on initial parameter values from the PD, LGD, and EAD models, outputs of the economic model, and outputs of the Interest Rate Model. Finally, the Simulation box has an arrow pointing to a box titled Model Outputs, which lists the following output elements produced by the simulations: Identity of the Failed Institution, Time of Failure, Deposits at Failure, Losses at Failure, and Discounted Losses at Failure.