Transfer risk

Transfer risk

The risk associated with the possibility of a currency not being able to be sent out of the country, usually due to central bank restrictions or a national debt rescheduling.

Transfer Risk

In international trade, the risk that a transaction cannot take place because a government or central bank will not allow currency to leave a country. For example, a government may theoretically declare that its currency is inconvertible, disallowing a transaction. Alternatively, a government may restructure its national debt service in such a way that it affects transfers of currency out of the country. See also: Political risk.
References in periodicals archive ?
In response to this request, the World Bank worked with the four countries to assess how catastrophe bonds could be designed to most effectively transfer risk to the capital markets.
I believe that you cannot transfer risk without transferring responsibility.
Topics include advances in modeling and mapping tools that help insurers understand and transfer risk from this peril in a manner similar to other catastrophic perils; opportunities for business growth enabled by these advances; and the evolving market impact of uncertain regulatory changes.
Reflex Marine's client support manager Robin Proctor delivered a presentation with a focus on marine transfer risk awareness and the impacts of the new NORSOK R-002 standard.
The vendor added that the move, which serves its plan for strategic repositioning and de-risking of the markets division, was seen to transfer risk management of, and/or market making for, up to GBP15bn (USD25bn/EUR18.
Hospitals, MCOs and ACOs are looking to transfer risk related to asset deployment, regulations, the law, and profits and losses, noted Ken Lund, chief executive officer of Shea Family in San Diego, an 80-year-old company that offers a continuum of services including independent living, home healthcare, meal delivery, transportation, assisted living, skilled care and hospice.
Summary paragraph: Using annuities to transfer risk unpopular in the U.
Sept 5 (Reuters) - Sales of catastrophe bonds, which let reinsurers and insurers transfer risk to capital markets, have reached a four-year high and are expected to hit $6 billion by the end of the year, Aon Benfield said on Wednesday.
However, the potential support for PCBK, and hence its support rating and foreign currency IDRs, are constrained by Fitch's assessment of currency transfer risk in Kosovo.
Ultimately, the unrestrained securitization of subprime mortgages helped to transfer risk to unwary investors, put people in homes they could not afford, and contributed to the housing bubble and economic crisis from which we are still recovering.
Kroll Factual Data assesses consumer data to help clients more accurately evaluate loan characteristics, transfer risk and increase safety and soundness.