Counterparty default risk

The risk that the counterparty to a contract does not comply, only partially complies or does not comply in a timely manner with its obligations. When granting credit, the credit institution enters into the risk of the borrower no longer being in a position to repay the credit.

Term-Nr.: 213

German: Kontrahentenausfallrisiko (474)

Source: FMA AT m. e. E., 30.10.2018