CREDITRISK

Credit risk

Credit risk refers to the risk that a borrower will default on any type of debt by failing to make payments which it is obligated to do. The risk is primarily that of the lender and include lost principal and interest, disruption to cash flows, and increased collection costs. The loss may be complete or partial and can arise in a number of circumstances. For example:

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credit risk

Noun

  1. The risk of loss due to a debtor's non-payment of a loan or other line of credit.


The above text is a snippet from Wiktionary: credit risk
and as such is available under the Creative Commons Attribution/Share-Alike License.

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