Results for tag: "Concentration Risk"

Concentration Risk in Banking is the risk that a bank's exposure to a single borrower, or a group of related borrowers, is too large relative to the bank's capital. This risk is particularly relevant for banks that have a large number of loans to a single borrower, or a group of related borrowers, as it can lead to a significant loss of capital if the borrower defaults. Banks must therefore manage their exposure to Concentration Risk by diversifying their loan portfolio and limiting their exposure to any single borrower. Companies in the Concentration Risk market include Moody's Analytics, Fitch Solutions, S&P Global Market Intelligence, and Refinitiv. Show Less Read more