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CREDIT RISK

Statistics Directorate    
Definition:
The risk that one party to a financial contract will fail to discharge an obligation and thus cause the other party to incur a financial loss. Because of deposit-takers’ role as financial intermediaries, monitoring the credit risk of their assets through FSIs, such as nonperforming loans to total loans, is central to any assessment of financial soundness.

Source Publication:
IMF, 2004, Compilation Guide on Financial Soundness Indicators, IMF, Washington DC, Appendix VII, Glossary.

Cross References:
Credit
Financial Soundness Indicators (FSIs)

Statistical Theme: Financial statistics

Created on Thursday, August 26, 2004

Last updated on Thursday, April 18, 2013