Committee on the Global Financial System and Credit risk: Difference between pages

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(CGFS).
1.


The Committee on the Global Financial System monitors developments in global financial markets for central bank Governors. It is one of the organisations hosted by the [[Bank for International Settlements]] (BIS) in Basel.
The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.   


Its seeks to identify and assess potential sources of stress in global financial markets, further understanding of the structure of financial markets and promote improvements to their functioning and stability. The CGFS also oversees the collection of the BIS international banking and financial statistics.
In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.


Set up as the Euro-currency Standing Committee in 1971 with a mandate to monitor international banking markets its focus was the monetary policy implications of growing off-shore deposit and lending markets. Reflecting the turning of attention to financial stability and structural changes in the financial system more broadly, [[G10]] Governors renamed the Committee and revised its mandate in 1999.
 
2.
 
A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.
 
 
== See also ==
* [[Banker's payment]]
* [[CCR]]
* [[Counterparty risk]]
* [[Covenant]]
* [[Credit default swap]]
* [[Credit derivative]]
* [[Credit exposure]]
* [[Credit risk diversification]]
* [[Capital risk]]
* [[ECL]]
* [[Event risk]]
* [[Exchange-for-value system]]
* [[MCT]]
* [[Operational risk]]
* [[Pre-settlement risk]]
* [[Price risk]]
* [[Prime bank]]
* [[Principal risk]]
* [[Putting a limit on losses]]
* [[Replacement cost risk]]
* [[Reputational risk]]
* [[Risk mitigation]]
* [[Sovereign risk]]
* [[Transaction risk]]
 
 
===Other links===
[http://www.treasurers.org/node/4351 Credit risk, Will Spinney, ACT 2008]
 
[[Category:Manage_risks]]

Revision as of 11:23, 10 February 2017

1.

The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.

In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.


2.

A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.


See also


Other links

Credit risk, Will Spinney, ACT 2008

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