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Credit risk is the risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay a loan or otherwise meet a contractual obligation.
A credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs.
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Credit risk is the possibility that customers who have been granted credit will either fail to pay when payment is due or will delay payment and take longer credit than agreed. Failure to pay is a bad debt risk which has a direct impact on profits. Delayed payments from customers also create a cost, however, since money is still owed that ought to be cash in the bank , thereby increasing interest costs ( on current borrowing) or reducing interest income ( from cash on deposit).
The risk of default on a debt that may arise from a borrower failing to make required payments in the form of interest or pricipal.
Understanding of a borrowers ability, capacity and willingness to repay debt in accordance with the lending protocals
its the risk of financila loss and to asure that the bank borrower will not fail in the agreed payment
the risk arises when the borrower fail to pay his interest and principal.
Credit risk management is done properly when you dont allow your company to become Lehman Brothers 2ND
A credit risk is the risk of default on a debt that may arise from a borrower failing to make required repayment on time. The first route, the risk is that of the lender and includes lost principal and interest, disorder to cash flows, and increased collection costs factors.
The risk that a borrower will fail to pay interest and principal according to the agreed schedule
