Concentration risk: Difference between revisions
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imported>Doug Williamson (Create the page. Sources: PRA webpage http://www.bankofengland.co.uk/pra/Documents/crdiv/fsa051instructionsjan2016.pdf, BIS webpage http://www.bis.org/publ/bcbs_wp15.pdf) |
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Revision as of 10:13, 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 credit losses.
