Loan to deposit ratio and Potential Future Exposure: Difference between pages
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'' | ''Derivatives'' | ||
( | (PFE). | ||
The Potential Future Exposure (PFE) in a derivatives contract is an additional credit risk, over and above the current replacement cost of the contract. | |||
The | The PFE represents the additional amount by which the exposure could increase, over the remaining life of the contract, with a given level of confidence. | ||
== See also == | == See also == | ||
* [[ | * [[Credit risk]] | ||
* [[ | * [[Confidence level]] | ||
* [[ | * [[Counterparty]] | ||
* [[ | * [[Fair value]] | ||
* [[ | * [[Replacement cost ]] | ||
Revision as of 16:53, 15 November 2016
Derivatives
(PFE).
The Potential Future Exposure (PFE) in a derivatives contract is an additional credit risk, over and above the current replacement cost of the contract.
The PFE represents the additional amount by which the exposure could increase, over the remaining life of the contract, with a given level of confidence.
