Concentration risk

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.

See also

• Cash concentration
• Concentrate
• Concentration
• Credit concentration risk
• Funding risk
• Herfindahl index
• Maturity structure
• Maturity wall
• Monopoly