Credit risk diversification: Difference between revisions
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* [[Bank]] | * [[Bank]] | ||
* [[Counterparty risk]] | * [[Counterparty risk]] | ||
* [[Credit risk]] | |||
* [[Interest rate transformation]] | * [[Interest rate transformation]] | ||
* [[Maturity transformation]] | * [[Maturity transformation]] | ||
* [[Portfolio]] | * [[Portfolio]] | ||
Revision as of 13:28, 27 July 2016
The potential benefit of a reduction in total portfolio credit risk, achieved by holding a well-diversified of loans or other assets.
Credit risk diversification is one of the economic functions of banks and other financial intermediaries.
