Académique Documents
Professionnel Documents
Culture Documents
Risk of loss that may occur from failure of the counter - party to make payments It includes non performance by a counter party in a variety of Off Balance Sheet contracts such as forward contracts / interest rate swaps, etc. Differs from market risk due to obligor behavior considerations The five Cs of Credit - Capital, Capacity, Condition, Collateral and Character Credit events include bankruptcy, failure to pay, loan restructuring, loan moratorium, accelerated loan payments
Portfolio management
Portfolio Management
It benefits adverse impact of concentration of exposures to a particular borrower, sector or industry The distribution of borrowers in various industry, business group and conduct of rapid portfolio reviews helps to mitigate credit risk