credit risk


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Related to credit risk: Market risk, Liquidity risk, Operational risk

Credit risk

The risk that an issuer of debt securities or a borrower may default on its obligations, or that the payment may not be made on a negotiable instrument. Related: Default risk.

Default Risk

The risk that a debtor will be unable to pay back its loans. Default risk goes up if a debtor has large number of liabilities and poor cash flow. Generally speaking, companies and persons with high default risk stand a greater chance of a loan being denied and pay a higher interest rate on the loans they do receive. See also: Bankruptcy.

credit risk

The risk that a borrower will be unable to make payment of interest or principal in a timely manner.
References in periodicals archive ?
Chapter 12 shows how credit risk affects over-the-counter derivatives.
The Basel Committee comment letter also discussed the own credit risk issue.
After operational risk, the biggest challenge facing the industry is credit risk because large-scale borrower defaults may even force a bank into bankruptcy.
A solvent banking system, ready and able to take credit risk, would also remove a major source of deflationary pressure.
Compliance with approved policies, such as whether the entity adhered to established market and credit risk limits, the reporting of any instances in which such limits were exceeded and whether appropriate remedial action was taken.
Identifies the technology vendors banks should shortlist when considering the purchase of a credit risk management solution
Risk transfer outside of the capital markets is a meaningful part of our single-family credit risk transfer strategy and we continue to explore options to expand our front-end risk transfer offerings," Palmer added.
In contrast to Basel I, which applies the same framework to all covered banks, Basel II, as currently proposed, offers three options for measuring credit risk and three for measuring operational risk.
Through Fannie Maes market-leading credit risk management capabilities, the company acts as an intermediary between lenders and investors by setting standards, providing credit risk management oversight, and maintaining stability through business cycles.
The Ambit credit risk management solution is to be used for credit assessment and credit portfolio monitoring for risk-based decisions, pricing and improved capital and credit risk management.
In today's changing financial landscape an organisation's ability to effectively monitor and manage its credit risk can mean the difference between success and survival, said senior conference producer at Fleming Gulf Zenab S Husain.
Credit Risk Management Forum for Financial ServicesC[pounds sterling]Effectively managing credit risks in an era of changeC[yen]