credit risk

American  

noun

1. the possibility of loss if a borrower defaults on a loan.

2. a borrower regarded as likely to default on a loan.

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Example Sentences

This structure transfers some credit risk to the customers, BofA explained.

From Barron's

Yet banks will need to be wary of credit risk.

From The Wall Street Journal

“Risk is rising, especially for smaller banks: Aggressive growth and competition could weaken underwriting standards and elevate credit risk,” the authors of the Moody’s report wrote.

From MarketWatch

Banks have less credit risk from software companies affected by AI because they have tighter underwriting standards than those of private lenders.

From MarketWatch

Close-end private credit funds however, still face credit risk if borrowers default, McKeown says.

From The Wall Street Journal