Credit risk definition wikipedia

  • What causes credit risk?

    This risk arises due to reasons like fall or loss of income of the borrower, change in market conditions, loan given out to borrowers without proper assessment of the borrower's creditworthiness or history, sudden rise in interest rates, etc..

  • This risk arises due to reasons like fall or loss of income of the borrower, change in market conditions, loan given out to borrowers without proper assessment of the borrower's creditworthiness or history, sudden rise in interest rates, etc.
Credit risk is the possibility of losing a lender holds due to a risk of default on a debt that may arise from a borrower failing to make required payments.

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