Concentration risk: Difference between revisions
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Exposure to losses from holding too narrow a range of investment assets, particularly credit losses. | Exposure to losses from holding too narrow a range of investment assets, particularly exposure to credit losses. | ||
Revision as of 10:14, 12 August 2016
1. Bank funding.
In bank funding, concentration risk arises when funding is sourced from too small a number of depositors, or an insufficiently diverse range of market instruments or sectors.
Also known as funding concentration risk.
2.
Exposure to losses from holding too narrow a range of investment assets, particularly exposure to credit losses.
