Credit Risk Definition Financial Edge
However, the likely amount of loss may be less than the totalunutilised commitments, as most retail and certain commerciallending commitments may be cancelled based on regular assessmentof the prevailing creditworthiness of customers. Most commercialterm commitments are also contingent upon customers maintainingspecific credit standards. Well-defined reporting structures will ensure that key monitoringoutcomes, such as those relating […]
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