credit risks
Borrower default potential
Credit risks are the possibilities that borrowers will fail to repay loans or meet other financial obligations.
Banks and lenders assess credit risk when deciding whether to extend credit and at what interest rate.
A borrower with poor credit history represents a higher credit risk and typically pays more to borrow money.
The term also refers to the borrowers themselves: Subprime mortgages were extended to credit risks who couldn't afford them.
- nonpaymentFailure to settle debts
- payment defaultFailure to repay debt
- lendingTemporary provision of resources
- defaultPreset standard option
- bad debtUnrecoverable money owed
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credit risksguaranteed returns
Promised investment profits
government bonds · secured loans · capital preservation · insured deposits · safe havens
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