transfer credit risk

transfer credit risk
The credit risk that arises, especially on long-term contracts, as a result of a foreign debtor's inability to obtain foreign currency from the central bank at the appropriate time. This may occur even when the debtor is able and willing to pay.

Accounting dictionary. 2014.

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  • transfer credit risk — The credit risk that arises, especially on long term contracts, as a result of a foreign debtor s inability to obtain foreign currency from the central bank at the appropriate time. This may occur even when the debtor is able and willing to pay.… …   Big dictionary of business and management

  • credit risk — The risk that a counterparty will default or delay payment on an obligation or that the value of a flow of payments will decline due to an adverse movement in the counterparty s credit rating See also political credit risk; transfer credit risk …   Big dictionary of business and management

  • credit risk — The risk taken when a loan is made that the borrower will default on or delay repayment of the principal or payments of interest. See also: political credit risk, transfer credit risk …   Accounting dictionary

  • political credit risk — sovereign risk The credit risk arising from the fact that a foreign government may decide not to honour its financial obligations or other business commitments. Compare transfer credit risk See also country risk …   Big dictionary of business and management

  • political credit risk — The credit risk that arises as a result of actions by a foreign government, which may affect the management of a foreign business, control of its assets, and its ability to make payments to its creditors. Compare: transfer credit risk …   Accounting dictionary

  • Credit risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …   Wikipedia

  • Credit risk management — In finance, Credit risk management is the process of assessing risk in an investment. When the risk has been assessed, investment decisions can be made and the risk vs. return balance considered from a better position.The main way to reducing… …   Wikipedia

  • credit default swap — A contract between a credit protection seller (seller) and a credit protection buyer (buyer) where, in consideration of the buyer paying the seller an agreed fee, the seller agrees to pay out agreed sums to the buyer if certain credit events… …   Law dictionary

  • Credit Default Insurance — The use of a financial agreement usually a credit derivative such as a credit default swap, total return swap, or credit linked note to mitigate the risk of loss from default by a borrower or bond issuer. Credit default insurance allows for the… …   Investment dictionary

  • credit derivative — Contractual arrangements that allow one party to transfer credit risk of a reference asset, which it may or may not own, to one or more counterparties. The first party may be called the protection buyer , the beneficiary or the originator . The… …   Financial and business terms

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