Credit risk diversification: Difference between revisions
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* [[Counterparty risk]] | * [[Counterparty risk]] | ||
* [[Credit risk]] | * [[Credit risk]] | ||
* [[Diversification]] | |||
* [[Interest rate transformation]] | * [[Interest rate transformation]] | ||
* [[Maturity transformation]] | * [[Maturity transformation]] | ||
* [[Portfolio]] | * [[Portfolio]] | ||
[[Category:Financial_risk_management]] | |||
Latest revision as of 15:19, 28 August 2019
The potential benefit of a reduction in total credit risk, achieved by holding a well-diversified portfolio of loans or other assets.
Credit risk diversification is one of the economic functions of banks and other financial intermediaries.
